SOUTH AFRICA – French multinational electric utility company ENGIE has reached an agreement to acquire from Abengoa a 40% equity stake in Xina Solar One, a 100 MW Concentrated Solar plant, as well as 46% of the Operations & Maintenance Company.
The plant is equipped with parabolic trough technology and a molten salt storage system that allows for 5.5 hours of energy storage to provide reliable electricity during peak demand.
Power is contracted through a 20 years Power Purchase Agreement with state utility Eskom.
Xina Solar One is supplying clean energy to more than 95,000 South African households and prevents the emission into the atmosphere of approximately 348,000 tons of CO2 each year.
The plant is located in the Northern Cape of South Africa, which is also the location of ENGIE’s 100MW Kathu CSP plant.
“The 100 MW CSP plant also contributes to ENGIE’s geographic rationalization by expanding its footprint in South Africa, where it is the leading IPP with 1,320 MW of installed capacity”Sebastian Arbola – CEO, ENGIE MESCATA
Xina Solar One will increase ENGIE’s renewable footprint and is a further step to cementing its position as the leading Independent Power Producer in South Africa.
Synergies between Xina and Kathu will be developed to further enhance the operational efficiency of both plants.
“With the acquisition of this project, ENGIE is pursuing its low carbon strategy. Xina augments the country’s installed peaking power and reduces its dependence on coal-fired electricity,” said Sébastien Arbola, CEO of ENGIE MESCATA.
“The 100 MW CSP plant also contributes to ENGIE’s geographic rationalization by expanding its footprint in South Africa, where it is the leading Independent Power Producer with 1,320 MW of installed capacity,” he added.
Mohamed Hoosen, CEO of ENGIE Southern Africa said: “ENGIE is valued as a highly skilled IPP and a long-term player in the South African power industry. We are adding an innovative high-performing plant and are increasing our CSP capacity. This investment will create value over the longer term while accelerating impact on the energy transition of our customers.”
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