DEG finances solar power plant in South Africa

Emerging economies need a reliable electricity supply for their economic development. However, economic growth can push electricity production to its limits, resulting in frequent power outages. This also applies to South Africa.

For this reason, DEG – Deutsche Entwicklungs- und Investitionsgesellschaft is committed to the expansion of electricity generation and focuses on renewable energies. The concentrated solar power plant (CSP) Kathu Solar Park (KSP) in the South African province of the Northern Cape, co-financed by DEG, has now been connected to the grid. As part of a long-term Power Purchase Agreement (PPA), solar power is fed into the state grid.

DEG is involved in Kathu both through the Metier investment company and as a co-investor, while the plant is operated by its main shareholder, European based energy producer Engie. Further investors include Dutch development finance company FMO and South African state-owned Public Investment Corporation. The total investment volume amounts to around 12 billion rand (approx. 750 million euros).

The installation contains almost 400,000 solar panels and, with a capacity of 100 MW, can meet the energy requirements of some 180,000 households in South Africa. In addition, a thermal energy storage system allows energy to be supplied reliably after sunset. By replacing conventional energy generation, this will allow some six million tonnes of CO2 emissions to be avoided over the next 20 years.

Original source: KfW
Published on 08 April 2019