The African Development Bank (AfDB) has approved a senior loan of $142 million to finance the construction of the 100 MW concentrated solar power (CSP) plant XiNa in South Africa. The XiNa Solar One project is the first renewable energy Independent Power Producer (IPP) and the first private sector Clean Technology Fund (CTF) that the AfDB has financed in South Africa.

XiNa is a 100 MW CSP plant using parabolic trough technology and a superheated steam cycle with a storage capacity of 1,650 MWh (equivalent to approximately 5 hours full load storage), configured to partially cover the South African peak load demand. This facility is located in the Northern Cape and will be interconnected by the Special Purpose Vehicle (SPV) by a 3km transmission line to a nearby existing substation.

This project aligns well with both internal and external policies and strategies. It supports government’s energy strategy that emphasizes the diversification of energy sources as set out in the National Integrated Resource Plan (2010 – 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.

The project cost is estimated at $908 million (R 9.538 billion). Senior debt will be financed by the AfDB, and other development finance institutions as well as three South African commercial banks.

According to the bank, the AfDB’s perspective will play an important role by providing much needed long-term finance, enforcing environmental and social standards and working to enhance the development impact of the Project. The project aligns with the green and inclusive growth objectives of the AfDB’s Ten Year Strategy as well as its Country Strategy Paper for South Africa which aims to support the country’s infrastructure development in the area of clean energy.