The first of its kind in Africa, the Redstone Solar Thermal Power Project features molten salt energy storage technology in a tower configuration with the capability to support South Africa’s demand for energy when it’s needed most – day and night. The 100 MW project with 12 hours of full-load energy storage will be able to reliably deliver a stable electricity supply to more than 200,000 South African homes during peak demand periods, even well after the sun has set. Fueled completely by the sun, with no back up fuel required, the project also features dry cooling of the power generation cycle as an important element to minimize water use.

With the lowest delivered electricity price of any CSP project in the country to date, the Redstone project will generate more than 480,000 megawatt-hours per year. This annual output is more than twice that of other technologies per MW of capacity, such as photovoltaics (PV) or direct steam solar thermal.

The Redstone Solar Thermal Power Project will be located in Postmasburg, near Kimberley in the Northern Cape Province, adjacent to the 75 MW Lesedi and 96 MW Jasper photovoltaic (PV) solar power projects successfully developed by SolarReserve and its investment partners. Together, the three projects comprise the world’s first combined CSP and PV solar park with a total of 271 MW of generating capacity. Under the REIPPPP process, the projects ensure robust local participation and technology transfer, and are structured to exceed the minimum REIPPPP requirements for BBBEE (Broad-Based Black Economic Empowerment) equality on job creation, local content, ownership, management, procurement, and enterprise development. All of the projects, as mandated under the REIPPPP, set aside a percentage of total project revenues for enterprise and socioeconomic development which will be invested for the benefit of local communities.

PROJECT OVERVIEW

• Location: Postmasburg, Northern Cape Province, South Africa
• Technology: Solar Thermal with Molten Salt Thermal Energy Storage
• Size: 100 MW facility output
• Storage: 12 hours of full load storage
• Electricity Production: 480,00MW-hours annually – twice the generation of an equivalent sized photovoltaic (PV) project
• Homes Powered: Equivalent of about 200,000 homes, day and night
• Dry Cooling: Significantly reduces the use of water
• Project Status: Awarded preferred bidder status by the South Africa Department of Energy

KEY PROJECT BENEFITS

• No requirement for natural gas or oil back up – completely emissions free
• Supports South Africa’s renewable energy programme with the most advanced solar technology, delivering clean energy, day and night
• Energy storage capabilities provide non-intermittent electricity supply to meet peak demand requirements
• Supports South Africa’s growing demand for generation capacity stimulated through economic growth
• Significantly reduces the use of water for cooling by using an efficient, low-water dry cooling system

ECONOMIC BENEFITS

• Financing: Equity investment and debt provided by local and international lending institutions including DFIs, with a significant Black Economic Empowerment (BEE) shareholding
• Tax Revenues: Project forecasted to contribute more than R7 billion in income tax to the fiscus over the first 20 years of operation
• Operating Expenses: During the more than 30-year operating life, the project will expend over R150 million per year in salaries and other operating costs, including land, insurance, and maintenance activities, much of this spent in the region
• Job Creation: More than 4,000 jobs during the construction phase including craft workers on site as well as jobs related to equipment supply, manufacturing, engineering, transportation and other services; during operations there will be over 80 full-time, permanent jobs
• Localization: A significant proportion of procurement and labour will be derived from South Africa, growing from the experience and supply chains developed through construction of the two PV projects at the same location
• Preferential Procurement: During construction, in excess of 43% of capital costs will be spent on South African content