The Development Bank of Southern Africa (DBSA) has signed a R1.4 billion finance contract to support the development of the !Ka Xu 100 MW concentrated solar power in the Northern Cape with the European Investment Bank (EIB).
The DBSA says in a statement that the local "energy sector is faced with a number of challenges".
"As the DBSA, we are encouraged by the EIB's trust and confidence towards our investment strategy in supporting South Africa's power generation infrastructure to improve the security of energy supply and optimise the energy mix which is much needed to accelerate the economic growth of South Africa," it says.
The DBSA provides financing, project preparation and implementation support to the African continent to "improve the quality of life of people in support of economic growth, social development and regional integration," it explains.
Once fully developed, the !Ka Xu concentrated solar thermal plant will collect solar energy using parabolic trough technology and convert it into electricity in the steam cycle, the bank explains. "Through a built-in molten salt storage system or the thermal energy storage (TES), the plant will have capacity to store energy during off peak hours and dispatch it during peak hours."
DBSA notes, as with all other transactions it appraises for funding, this project went through its environmental appraisal guidelines to determine its impact on the environment.
"The DBSA is confident that this investment in the renewable energy programme will have positive contribution towards efforts to minimise adverse impact of energy generation on the environment and, in particular, on climate change."
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