Abengoa starts construction on two solar power plants in South Africa

8 November 2012 (Last Updated November 8th, 2012 18:30)

Spain-based Abengoa has started construction on two concentrating solar power (CSP) plants in South Africa.

Abengoa HQ_Spain

Spain-based Abengoa has started construction on two concentrating solar power (CSP) plants in South Africa.

The energy technology solutions provider will build, operate and maintain the 50MW Khi Solar One and the 100MW KaXu Solar One and has signed long-term power purchase agreements with South African utility Eskom.

Both plants will provide South Africa with clean energy while creating local jobs in the region once they become operational.

These two plants are among 28 renewable energy projects announced last year by the South Africa Department of Energy (DOE), which aims to bring 17,800MW of renewable energy online by 2030.

Khi Solar One and KaXu Solar One, located at Upington and Pofadder of the Northern Cape Province respectively, are expected to reduce the country's carbon dioxide emissions by about 498,000t per year.

The two CSP plants, which are expected to have combined storage capacity of about five hours, will use the dry cooling technology to reduce water consumption.

Both power plants have closed project finance agreements with a group of international and South African financial institutions.

Abengoa owns 51% of the projects, while state-owned Industrial Development Corporation (IDC) holds a 29% stake and the Black Economic Empowerment programme owns the remaining 20% stake.


Image: Abengoa's headquarters in Calle Energía Solar in Seville, Spain. Photo: courtesy of Abengoa.