ENGIE has reached an agreement to acquire from Abengoa a 40% equity stake in Xina Solar One, a 100MW concentrated solar plant, as well as 46% of the operations and maintenance company
The plant is equipped with parabolic trough technology and a molten salt storage system that allows for 5.5 hours of energy storage to provide reliable electricity during peak demand. Power is contracted through a 20 years power purchase agreement with Eskom (South African Electricity Public Utility).
The plant is located in the northern Cape of South Africa, which is also the location of ENGIE’s 100MW Kathu CSP plant. Xina Solar One increases ENGIE’s renewable footprint and is a further step to cementing its position as the leading independent power producer in the country. Synergies between Xina and Kathu will be developed to further enhance the operational efficiency of both plants.
“The 100MW CSP plant also contributes to ENGIE’s geographic rationalisation by expanding its footprint in South Africa, where it is the leading Independent Power Producer with 1,320 MW of installed capacity,” noted Sébastien Arbola, CEO of ENGIE MESCATA.
Mohamed Hoosen, CEO of ENGIE southern Africa, commented, “This investment will create value over the longer term while accelerating impact on the energy transition of our customers.”
Co-shareholders on Xina Solar One include Public Investment Corporation, a pension fund manager and a shareholder on ENGIE’s Kathu project (20%); Industrial Development Corporation, a development finance institution wholly- owned by the South African Government (20%) and Xina Community Trust, funded by the IDC (20%).
Completion of the transaction is subject to the fulfillment of certain conditions including merger control clearance from relevant competition authorities.
