- ENGIE Africa has acquired a 40% equity stake in 100MW Xina Solar One concentrated solar (CSP) plant from Abengoa.
- The deal includes 46% of the Operations & Maintenance company.
- The plant is located in the Northern Cape of South Africa, which is also the location of ENGIE’s 100MW Kathu CSP plant.
The Xina Solar One 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. A 20 year Power Purchase Agreement is in place with South Africa’s power utility, Eskom.
Mohamed Hoosen, CEO of ENGIE Southern Africa: “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.”
Co-shareholders on Xina Solar One include Public Investment Corporation, a pension fund manager and a shareholder on ENGIE’s Kathu project (20%); Industrial Development Corporation, a development finance institution wholly- owned by the South African Government (20%); and Xina Community Trust, funded by the IDC (20%). Xina Solar One, which started commercial operation in August 2017, was built by Abengoa.
Completion of the transaction is subject to the fulfillment of certain conditions including merger control clearance from relevant competition authorities.
Author: Bryan Groenendaal