Abengoa closes USD 660 million project financing for Xina Solar One, 100 MW solar power plant in South Africa

KaXu Solar One

Abengoa announced that it has, with its partners the Industrial Development Corporation (IDC), the Government Employees Pension Fund represented by the Public Investment Corporation (PIC) and Kaxu Community Trust, closed the non-recourse project financing for Xina Solar One.

The USD 660 million non-recourse project financing agreements combine financing from development financial institutions such as the African Development Bank, the International Finance Corporation, Industrial Development Corporation and the Development Bank of Southern Africa; and local investment banks such as Absa member of Barclays, Nedbank and Rand Merchant Bank, a division of FirstRand Bank Limited. Xina Solar One will supply clean electricity to Eskom, South Africa’s power utility, under the 20-year power purchase agreement (PPA) signed in late 2014.

Loan proceeds will be used for the construction of the 100 MW solar thermal electricity (STE) power plant Xina Solar One. It features parabolic trough technology with a five-hour thermal energy storage system using molten salts that assists in meeting the evening peak demand. This plant will produce clean and dispatchable energy to serve more than 95,000 households and will prevent the emission of 348,000 tons of CO2 per year.

With a total investment of approximately USD 880 million, construction of Xina Solar One started in 2014. Job creation will peak at over 1,300 positions during the construction phase, generating 45 permanent jobs for plant operation and maintenance.

Xina Solar One will belong to a consortium, 40 % of which is controlled by Abengoa. Other members of the consortium are IDC, PIC, and KaXu Community Trust.