CDC Group plc has said it will release approximately $ 50 million to help finance the Redstone Concentrated Solar Power Project in South Africa. In a statement released on Wednesday, June 23, the UK’s development finance institution said the support marks its return to the South African direct investment market, and affirms its climate investment mandate.
“Our investment in the Redstone Project signals CDC’s return to the South African market on the direct debt side, thanks to a project that uses pioneering technology that will positively transform the country’s energy,” said Iain Macaulay, Manager project financing at CDC Group. He added: “Our investment in Redstone represents our continued objective to support border markets in a just energy transition and to support significant mitigation measures aimed at reducing greenhouse gas emissions”.
The solar power plant construction project is being carried out by the Saudi group Acwa Power, developer, investor and independent power producer (IPP). With a capacity of 100 MW, it requires global funding of 800 million USD. An investment expected, among others, from the African Development Bank (AfDB) and several local banks that have already committed.
As a reminder, the project will provide 200,000 South African households with clean and reliable energy. It will help offset around 480,000 tonnes of carbon per year, or the equivalent of the per capita emissions of 67,000 South Africans.
