OPIC has signed a deal with SolarReserve and Saudi Arabia-based ACWA Power for the development of the solar project.
The project is expected to help meet US’s clean energy target as well as South Africa’s Renewable Energy Independent Power Producer Procurement Program (REIPPPP).
The REIPPPP aims to add 3,725MW of clean power to the country’s energy generation mix.
OPIC president and CEO Elizabeth Littlefield said: "It’s impressive that Redstone brings together the innovative US private sector leadership and technology of SolarReserve, the international experience of ACWA Power, and large-scale catalytic financing from OPIC.
"This sort of change-making partnership is at the heart of President Obama’s Power Africa initiative and creates broad, lasting impact in international development."
The deal also marks a significant milestone for President Obama’s Power Africa initiative, which is intended to bring new power access to the more than 600 million sub-Saharan Africans.
In addition to featuring SolarReserve’s CSP technology, the facility will use molten salt storage capability to prove consistent baseload electricity, even after the sun sets.
SolarReserve CEO Kevin Smith said: "The Redstone project marks an important technology advancement for Africa in clean, renewable power, and a demonstration of US developed technology that is leading the world in large scale solar energy storage.
Smith said that the price of the power generated from the CSP project is lowest when compared to the price of other CSP projects, till date.
The project is designed to deliver a stable electricity supply to meet the needs of more than 200,000 South African homes during peak demand periods.
ACWA Power president and CEO Paddy Padmanathan said: "The Redstone CSP Project, ACWA Power’s 2nd project in South Africa, delivers dispatchable power at the most competitive tariff offered in its Renewable Energy Independent Power Producer Procurement Program (REIPPPP) program to date for CSP technology, while maximizing value retention in not only the South African economy, but also within the local economy in the project vicinity."
Image: Officials signs deal for the 100MW Redstone solar project in South Africa. Photo:courtesy of The Overseas Private Investment Corporation (OPIC).
