SolarReserve and ACWA Sign Power Purchase Agreement for 100-Megawatt Solar Thermal Project with Energy Storage in South Africa

100-megawatt Redstone Solar Thermal Power Project in Northern
Cape, with 1,200 megawatt-hours of energy storage, will reliably deliver
non-intermittent power to South Africa’s electricity grid – even well
after the sun has set

SANTA MONICA, Calif.–(BUSINESS WIRE)–#CSP–As part of the South African Department of Energy’s Renewable Energy
Independent Power Producer Procurement Programme (REIPPPP),
a consortium led by SolarReserve
and International Company for Power and Water (ACWA
Power) have signed a 20-year power purchase agreement with Eskom,
South Africa’s public electric utility company, for the Redstone Solar
Thermal Power Project. The 100-megawatt power station with 12 hours of
energy storage will be able to reliably deliver a stable supply of clean
electricity to the equivalent of more than 200,000 South African homes
each year. The Redstone
project will be located near Postmasburg in the Northern Cape Province,
adjacent to the 75 MW Lesedi
and 96 MW Jasper
photovoltaic (PV) solar power projects successfully developed and
implemented by SolarReserve.

Providing Power When It’s Needed Most

The first of its kind in Africa, the Redstone project will utilise
SolarReserve’s proprietary ThermaVault™ technology – the world’s most
advanced solar thermal technology with integrated molten salt energy
storage, which solves the intermittency issues experienced with other
renewable energy solutions and is dispatchable 24/7. SolarReserve will
supply the core technology for the project, including the molten salt
receiver designed and manufactured by SolarReserve, which is the heart
of the power station, along with the heliostat collector field controls
and tracking system.

This key technology will enable the Redstone power station to deliver
100 megawatts of non-intermittent clean energy to the South African
grid, especially during peak periods – day and night. As identified
under the power purchase agreement, Redstone will deliver continuous
electricity to the national grid for up to 17 hours a day in order to
meet peak energy demands, as a result of SolarReserve’s technology’s
ability to store 1,200 megawatt-hours of energy daily. The project’s
electricity price is the lowest of any solar thermal project awarded in
the country to date.

“The Redstone project marks an important technology advancement for
South Africa in clean, renewable power,” said SolarReserve’s CEO Kevin
Smith. “Due to fully integrated thermal energy storage, the facility
will provide power on-demand, just like conventional coal, oil, nuclear
or natural gas-fired power plants, but without harmful emissions or
hazardous materials, and without any fuel cost or foreign exchange risk.
We look forward to working with our partners and stakeholders, including
the communities where the project is located, to support South Africa in
meeting its energy supply targets, stimulating long-term economic
development, and creating new jobs and businesses.”

World Class Renewable Energy Programme Has Spurred Investment and
Economic Development

South Africa Department of Energy’s REIPPPP is an outstanding programme
that became a global standard for renewable energy procurement. In
addition to cost effective energy procured through the competitive
tendering process, renewable energy projects awarded under the programme
must meet minimum requirements for local procurement, employment, and
economic development.

“The REIPPPP is a world class programme that SolarReserve and its
partners and investors are committed to supporting as a long-term
partner and investor,” said Alistair Jessop, SolarReserve’s Senior Vice
President. “As a direct result of the programme, our operating and
awarded projects in South Africa will invest over 1.3 billion Rand in
economic and socio-economic development. Our projects in operation
generated over 3 million man-hours during construction – Redstone will
create in excess of 4,000 jobs.”

Economic and Socio-Economic Benefits for South Africa – Today and
Tomorrow

The Redstone project will create more than 4,000 jobs during
construction and operation phases of the project. During the
construction period, in excess of 43% of capital costs will be spent on
South African content. The project will have over 26% of Black Economic
Empowerment (BEE) shareholding, and commits to a 2.5% community trust,
further supporting the local communities. The project will expend over
700 million Rand on small to medium enterprise and socio-economic
projects over the 20-year period. Tax contributions are estimated to be
in excess of R7 billion in income tax over the first 20 years of
operation.

Along with the Redstone project, SolarReserve has been committed to
investing in South Africa since 2010, with 246 megawatts of solar
capacity already installed and operating in South Africa, 650 megawatts
bid into expedited round 4.5 of the REIPPPP, and a pipeline of over
2,000 megawatts. The projects in operation generated over 3 million
man-hours during construction, and the three solar thermal projects
SolarReserve bid into expedited bid round 4.5 could create more than
12,000 jobs. In total, the company’s operating and awarded projects in
South Africa will invest over 1.3 billion Rand in economic and
socio-economic development, with future round 4.5 projects investing
over 1.9 billion Rand.

About SolarReserve

SolarReserve is a leading global developer, owner and operator of
utility-scale solar power projects, with more than R24.4 billion of
projects in operation worldwide. The company has commercialised its
proprietary ThermaVault™ advanced solar thermal technology with
integrated molten salt energy storage that delivers renewable energy
that is dispatchable 24/7. The technology is now one of the world’s
leading energy storage technologies, and allows solar energy to operate
like traditional fossil-fired and nuclear electricity generation –
except the fuel is the sun which means zero emissions, zero hazardous
waste, and zero dependence on fuel price volatility.

Since the company's formation in early 2008, SolarReserve's experienced
team has assembled a pipeline of over 13 gigawatts across the world's
most attractive, high growth renewable energy markets. SolarReserve is
headquartered in the US, and maintains a global presence with six
international offices to support widespread project development
activities across more than 20 countries.

Contacts

SolarReserve
Mary Grikas, +1.310.315.2274
[email protected]