(Photo courtesy of SolarReserve)
As part of Secretary John Kerry's Climate and Clean Energy Investment Forum, the Overseas Private Investment Corp. signed an agreement with U.S. based energy developer SolarReserve and ACWA Power, recognizing OPIC's $400 million commitment of debt financing to support the development of the Redstone Concentrating Solar Power project in Northern Cape, South Africa.
The Redstone project is a 100 MW renewable energy facility that will be connected to the South African national grid. Using SolarReserve's CSP technology, Redstone's molten salt storage capability will deliver consistent baseload electricity, even after the sun sets. This is a critical development in a country where frequent power outages have been cited as an obstacle to economic growth.
OPIC support to the Redstone project is also a significant milestone for President Obama's Power Africa initiative, of which OPIC is a key contributor. Power Africa aims to bring new power access to the more than 600 million sub-Saharan Africans currently living without energy access.
OPIC's financing to the Redstone project helps fulfill both the U.S. commitment to clean energy in the developing world as well as South Africa's own goals through their Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), which aims to add 3,725 MW of clean power to South Africa's energy generation mix.