The construction of the 100 MW Kathu Solar Park is set to get underway soon. The solar park, situated in the Northern Cap, is expected to be operational in the second half of 2018.

Kathu Solar Park is a greenfield Concentrated Solar Power (CSP) project with parabolic trough technology and equipped with a molten salt storage system that allows 4.5 hours of thermal energy storage and thus limits the intermittent nature of solar energy.

Eskom has signed a 20-year Power Purchase Agreement with an ENGIE-led consortium which owns the solar park. The consortium includes a group of South African investors comprising SIOC Community Development Trust, the Investec bank, Lereko Metier and the Public Investment Corporation.

Bruno Bensasson, CEO of the ENGIE Africa Business Unit, commented: “This is an important milestone for our first CSP project in the ENGIE Group. The Kathu Solar Park project supports South Africa’s strategy of increasing the contribution of renewable power and also underlines our commitment to be a key partner in achieving sustainable energy generation in Africa.”

The project is funded by a mix of debt and equity. The debt is funded from a club of South African banks, namely Rand Merchant Bank, Nedbank Capital, ABSA Capital, Investec and the Development Bank of South Africa.

Kathu Solar Park has been awarded preferred bidder in the third round of the Renewable Energy Independent Power Producer Procurement Program and will create approximately 1 200 jobs during the construction phase.

It is estimated that the Kathu Solar Park will save six million tons of CO₂ over 20 years and will further promote local economic development through various projects such as a local community trust for the benefit of communities in the John Taolo Gaetsewe District Municipality situated in the Northern Cape and sourcing of other services from local entrepreneurs.