The African Development Bank (AfDB) has granted a loan of $142m to construct a 100MW concentrated solar power (CSP) plant in South Africa.
The loan, which includes a $41.5m concessional financing from the Clean Technology Fund (CTF), will be used for the construction of the XiNa Solar One project.
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Expected to cost $908m, the XiNa Solar One project is located close to Pofadder, a city in the north of the Northern Cape Province, next to KaXu Solar One and is the first renewable energy Independent Power Producer (IPP).
Featuring parabolic trough technology, the 100MW CSP plant is due to be interconnected by the Special Purpose Vehicle (SPV) by a 3km transmission line to a nearby existing substation.
In addition to reducing huge dependence on coal fired power plants for the country, the project will increase access to clean power as well as reduce the peak power generation costs for the nation.
The project, which aligns well with both internal and external policies and strategies, also supports the South Africa Government’s energy strategy that plans to diversify the energy sources as specified in the National Integrated Resource Plan (2010 – 2030).
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By GlobalDataAdditionally, the project is aligned with its Country Strategy Paper for South Africa which intends to support the country’s infrastructure development in clean energy.
Xina Solar One is owned by a consortium comprising Industrial Development (IDC), the Public Investment (PIC), KaXu Community Trust and Abengoa, which holds 40% stake.
