Representing the largest renewable energy investment in South Africa to date, the Redstone concentrated solar power (CSP) project, located in the Northern Cape, has completed its first debt drawdown, securing roughly $152 million from the African Development Bank (AfDB) as the Mandated Lead Arranger and Coordinating Bank.
With commercial operation expected for Q4 2023, the innovative CSP project will supply power to 200,000 households and eliminate 440 metric tons of carbon dioxide emissions per year.
The project has leveraged financing from a range of domestic and international lending institutions, including Absa Bank, CDC Group, the Development Bank of Southern Africa, Deutsche Investitions- und Entwicklungsgesellschaft, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden, Investec Bank, Nedbank, Sanlam and the Industrial Development Corporation.
“Redstone will play an important role in South Africa’s decarbonization efforts. We are therefore pleased to have played such a prominent role in the project’s structuring and financing,” noted Kevin Kariuki, Vice President of Power, Energy, Climate Change and Green Growth for the AfDB. “Furthermore, the bank looks forward to playing an even bigger part in supporting South Africa’s just energy transition by harnessing the abundant renewable sources of energy through innovative partnerships with the private sector.”
Construction of the project began nine months ago, and engineering works have since been reported as 58% completed, while procurement works are 45% completed and construction is at six percent.