Abengoa has begun construction on two concentrating solar power (CSP) plants in South Africa.
The 50 MW solar power tower Khi Solar One and the 100 MW parabolic trough plant KaXu Solar One were two of the 28 renewable energy projects announced in late 2011 by the South Africa Department of Energy (DOE). The DOE intends to bring 17,800 MW of renewable energy online by 2030.
Abengoa is partnering with the state-owned Industrial Development Corporation (IDC), South Africa's largest development finance institution, to help the country to reduce its dependence on fossil fuel for power generation, specifically coal.
Abengoa will build, operate and maintain the plants, owning 51% of the projects; the IDC holds 29%, and the Black Economic Empowerment program maintains the remaining 20%.
Both plants today signed long term power purchase agreements with Eskom, South Africa's power utility, and closed project finance agreements with a group of South African and international financial institutions.
Khi Solar One and KaXu Solar One, located in the Northern Cape Province near Upington and Pofadder, respectively, will use advanced technology to provide South Africa with clean energy while creating local jobs in the region.