OPIC to finance Redstone CSP project in South Africa

The US Overseas Private Investment Corporation (OPIC) board approved up to $400m in financing for the 100MW Redstone concentrating solar power plant in Northern Cape, South Africa.

California-based SolarReserve, alongside co-sponsor and lead developer ACWA Power, will use an OPIC Investment guaranty to help construct and operate the facility.

OPIC says its financing supports the agency's key role in President Barack Obama's Power Africa initiative, which aims to address critical power access needs across sub-Saharan AFrica.

SolarReserve's development of the project also helps fulfill the South African government's renewable energy goals.

OPIC is the US government's development finance institution. It mobilizes private capital to help address critical development challenges and in doing so, advances US foreign policy and national security priorities.

OPIC's website says that by working with the US private sector, the agency helps US businesses gain footholds in emerging markets, catalyzing revenues, jobs and growth opportunities both at home and abroad.

It provides investors with financing, political risk insurance, and support for private equity investment funds, when commercial funding cannot be obtained elsewhere.