French electric utility major, ENGIE SA has inked an agreement with energy company Abengoa to acquire a 40% stake in Xina Solar One, a 100MW solar plant in South Africa, and a 46% stake in the O&M (operations & maintenance) firm.
The Xina Solar One plant powers more than 95,000 households in South Africa and simultaneously prevents approximately 348,000 tons of CO2 emission each year. Integrated with parabolic trough technology as well as a molten salt storage system, the plant entails energy storage of 5.5Hrs to supply electricity during peak demand. Located in the Northern Cape of South Africa, the plant is also in close proximity to the 100 MW Kathu CSP plant owned by ENGIE.
With this acquisition, ENGIE could increase its renewable energy footprint and further anchor its position as the leading Independent Power Producer in the country. Unification of the Kathu and Xina plants will further enhance the operational efficiency of both the plants.
Speaking on the acquisition, ENGIE Southern Africa’s CEO, Mohamed Hoosen said that their firm is considered to be a highly skilled independent power producer (IPP) and an eminent player in the South African power sector.
Supported by this acquisition, ENGIE is adding a high-performing plant and is increasing its CSP capacity. The investment will also generate great value to the company in the long run while accelerating energy transition for its customers.
Sébastien Arbola, Chief Executive, ENGIE MESCATA, mentioned that the acquisition would enable ENGIE to further its low carbon strategy. Xina Solar One augments the region’s installed peaking power and curbs the reliance on coal-fired electricity. The 100 MW CSP plant will endorse ENGIE’s geographic rationalization by extending its footprint in South Africa, a country were their company holds around 1,320 MW of installed capacity.
Currently, ENGIE has stake in a wind energy farm (94MW Aurora), two solar PV plants (21 MW), a CSP plant (100 MW Kathu), and two thermal power plants (335 MW Dedisa and 670 MW Avon) in South Africa.