A consortium led by ACWA Power of Saudi Arabia and SolarReserve of the US has been awarded the right to develop the $1.2bn Redstone Project, a 100MW concentrating solar power (CSP) generation plant in Northern Cape Province, South Africa.
The new plant will power approximately 210,000 homes, ACWA said.
CSP uses a field of mirrors to direct sunlight to a boiler mounted on a central tower, with the energy stored in molten salt used to power a steam turbine.
ACWA said Redstone would off-set approximately 500,000 tons of carbon dioxide which would have been emitted by generating power with fossil fuels, and that 800 jobs will be created during peak construction.
ACWA is also developing a 50MW CSP plant at Bokpoort in South Africa and a 160MW CSP plant at Ouarzazate in Morocco.
Rajit Nanda, Chief Investment Officer, ACWA Power, said: "ACWA Power is also particularly pleased to yet again also lead in the field of project financing by structuring this tower technology based solar power project with limited recourse project finance for the first time in the world."