Engie acquires South Africa solar plant
The French multinational electric utility company has acquired a concentrated solar power plant in the Northern Cape of South Africa.
Engie has purchased a 40% equity stake in a 100 Megawatt (MW) concentrated solar power plant in South Africa, Xina Solar One, from Spanish infrastructure, energy and water company Abengoa, as well as a 46% interest in its operations and maintenance company.
The solar power plant, which was built by Abengoa, began commercial operation in 2017.
Xina Solar is in the same location as one of Engie’s existing 100 MW plants, Kathu CSP, increasing Engie’s clean energy footprint and fortifying its market position as an independent power producer in South Africa.
There will be a degree of cooperation between the Xina and Kathu, in order to improve the operational efficiency of both power plants.
Power to Xina Solar One has been contracted under a 20-year power purchase agreement with South African electric energy company Eskom.
Xina Solar supplies clean energy to over 95,000 African houses and prevents the release of approximately 348,000 tons of carbon dioxide into the atmosphere every year.
“With the acquisition of this project, ENGIE is pursuing its low carbon strategy” said Sebastien Arbola, CEO of Engie MESCATA, the product of a merger between Engie’s Africa portfolio and its Middle East, South and Central Asia, and Turkey division, which was completed earlier this year.
Arbola added: “Xina augments the country’s installed peaking power and reduces its dependence on coal-fired electricity. The 100 MW CSP plant also contributes to Engie’s geographic rationalisation by expanding its footprint in South Africa.”
The CEO of Engie Southern Africa, Mohamed Hoosen, noted that Xina is a “high-performing plant”, which will increase the company’s concentrating solar power capacity, adding: “This investment will create value over the longer term while accelerating impact on the energy transition of our customers.”
Xina Solar’s co-shareholders include pension fund manager and Kathu project shareholder Public Investment Corporation, and a development finance institution wholly-owned by the South African Government, Industrial Development Corporation, each holding a 20% stake in the solar power plant. In addition, Xina Community Trust, which is funded by the Industrial Development Corporation, owns a 20% share of Xina Solar.
Aside from solar energy projects, Engie owns various other renewable energy developments in South Africa, including a wind farm, two photovoltaic plants, and two thermal power peaking plants.
In December, a subsidiary of Engie agreed to merge with publicly traded special purpose acquisition vehicle TPG Pace Beneficial Finance, a deal worth USD 1.4 billion.
Source : iclg
