The Board of Directors of the African Development Bank (AfDB) approved a loan for $142 million for a concentrated solar power (CSP) plant in South Africa. The renewable energy project is the first for the financial institution in South Africa. The XiNa Solar One project has the power production capacity of 100 megawatts and a storage capacity of 1,650 megawatt hours. The total cost of the project is expected to total $908 million.
AfDB said the project will help meet the goals of the South African government, which aims to diversify its energy sources as part of its energy strategies in the National Integrated Resource Plan for 2010 to 2030.
"XiNa will support the country's ambitious target to reduce its huge dependence on coal fired power plants increase access to clean power, and reduce the peak power generation costs," according to AfDB.
The AfDB site said the financial institution approved 317 operations with financing worth $4.39 billion last year. Of this total, energy projects accounted for $569.1 million with 57.9 percent given to the public sector.