SA’s largest renewable energy project Redstone CSP achieves financial close

Norton Rose Fulbright South Africa’s banking and finance team advised Pele Green Energy Redstone CSP Proprietary Limited in relation to their equity funding from Industrial Development Corporation of South Africa Limited on South Africa’s largest renewable project Redstone CSP.

Construction on the 100 MW Redstone project will now commence, following achievement of financial close. At ZAR 11.6 billion total investment, the Redstone project is the largest renewable energy investment in South Africa to date.

The project has secured financing from prominent international and South African financial institutions including; African Development Bank (AfDB), ABSA Bank, Development Bank of Southern Africa (DBSA), CDC Group, Nedbank Limited, Nederlandse FinancieringsMaatschappij voor Ontwikkelingslanden (FMO), Deutsche Investitions- und Entwicklungsgesellschaft (DEG), Investec Bank and Sanlam Life Insurance.

Commenting on this milestone, Ronald Chindeka, Senior Manager - Project Finance, at Pele Green Energy said: “We are happy to be involved with partners and funders who support our participation in operational aspects of the project. The construction of this project plays a role in driving the national agenda.”

Located in the Northern Cape Province of South Africa, the plant will be equipped with a 12-hour thermal storage system that will supply electricity to nearly 200,000 households around the clock.

Commencement of operations is scheduled for Q4 2023.

During the construction period, the project will create more than 2,000 construction jobs at peak, with about 400 from the local community; and approximately 100 permanent direct jobs during the operating period.

The Norton Rose Fulbright team was led by Malibuye Cossie and Raghemah Hendricks and supported by Roxanne van Rooyen, Darragh Meeker, Devan Falconer and Uzair Bulbulia.