The Xina Solar One project, which is expected to cost about $880m, is being built in the Northern Cape Province. Construction on the facility started in 2014.
Institutions including the African Development Bank, the International Finance Corporation, Industrial Development Corporation and the Development Bank of Southern Africa as well as local investment banks including Nedbank took part in the project financing agreements.
Xina Solar One features parabolic trough technology with a five-hour thermal energy storage system that will utilize molten salt.
The plant will generate enough energy for over 95,000 homes and reduce 348,000 tons of CO2 emissions per year.
South Africa’s power utility Eskom will buy the energy generated from the project under a 20-year power-purchase agreement.
Abengoa owns a 40% interest in the project. The remaining stake is held by the Industrial Development Corporation, the Government Employees Pension Fund represented by the Public Investment Corporation and Kaxu Community Trust.
Xina Solar One will be located close to Pofadder and next to the 100MW KaXu Solar One project.
The two projects, along with the 50MW Khi Solar One, were awarded by South Africa’s Department of Energy under its Independent Power Producer Program.
Under the program, South Africa is planning to generate about 17,800MW of renewable energy by 2030 and reduce its reliance on fossil fuel.
Image: The Xina Solar One project, which is expected to cost about $880m, is being built in the Northern Cape Province. Photo: Courtesy of maya picture/FreeDigitalPhotos.net.
