ACWA Power, a global leader in water desalination and a pioneer in green energy, has reaffirmed its commitment to driving Africa’s renewable energy growth with its latest milestone in South Africa. The company announced that its Redstone Concentrating Solar Power (CSP) plant, located in the Northern Cape province, has successfully reached an operational capacity of 50 megawatts (MW), with plans to scale up to its full 100 MW capacity within the coming days. This achievement further solidifies ACWA Power’s role as a critical player in Africa’s clean energy landscape, showcasing the potential of solar power to reshape the continent’s energy future.

Redstone CSP and Solar Power Expansion in Africa

Redstone CSP, one of ACWA Power’s most advanced projects, was designed to provide reliable, continuous energy even during peak evening hours, thanks to its integrated molten salt thermal energy storage technology. This enables the plant to deliver clean energy around the clock, an essential feature for South Africa’s national grid, which has been strained by frequent power shortages. Once fully operational, the plant will supply electricity to approximately 200,000 households, contributing significantly to South Africa’s goal of increasing its renewable energy output.

In addition to Redstone, ACWA Power has celebrated another milestone at its Kom Ombo Photovoltaic (PV) plant in Egypt, which has reached its maximum production capacity of 200 MW. The Kom Ombo PV plant, strategically situated in Egypt’s Aswan region, now generates clean energy for more than 200,000 homes, marking an important step in Egypt’s renewable energy roadmap, which aims to generate 42% of its energy from renewable sources by 2035.

Deepening Investments in Africa’s Renewable Energy

With an estimated USD 7 billion in investments across Africa, ACWA Power has positioned itself as the continent’s leading private-sector investor in renewable energy. These investments are not only transforming Africa’s energy landscape but are also reinforcing the local economies, creating jobs, and driving industrial growth. In alignment with these goals, ACWA Power has recently secured agreements with the Egyptian and Tunisian governments to establish green hydrogen facilities, marking an important step toward sustainable fuel alternatives on the continent.

ACWA Power’s CEO, Marco Arcelli, noted, “Our investments in Africa reflect our commitment to sustainable growth through strategic partnerships and advanced technology. ACWA Power is not only a financial leader but a responsible partner and a pioneer in shaping Africa’s energy and water future. We are eager to invest further where opportunities are most promising, bringing positive change to communities across the continent.”

The company’s commitment to green hydrogen is especially noteworthy. In partnership with NEOM, a visionary project in Saudi Arabia, ACWA Power aims to launch the world’s largest green hydrogen production facility by 2026. Leveraging Africa’s abundant renewable resources and strategic geographical position, the company envisions green hydrogen as a cornerstone of the continent’s transition to sustainable, affordable fuel solutions that can compete on a global scale.

Water Desalination and Energy Storage: Building Sustainable Infrastructure

Beyond energy, ACWA Power leads in water desalination, an essential service for many African nations facing water scarcity due to climate change. With the lowest levelized water tariff achieved worldwide, the company offers scalable desalination solutions designed to provide affordable, clean water to millions. This aligns with Africa’s urgent need for sustainable water resources, as population growth and urbanization intensify water demand.

The company’s advanced energy storage solutions are also critical in providing dependable energy infrastructure. Storage is a key component of renewable energy projects, enabling consistent energy supply despite the intermittent nature of sources like solar and wind. The implementation of energy storage at Redstone CSP exemplifies ACWA Power’s focus on innovative technologies that ensure reliability.

Future Goals: ACWA Power’s Vision for Africa

In 2023, ACWA Power announced an ambitious target to triple its operational size, a plan that includes increasing its footprint across emerging markets in Africa. The company’s strategic investments are anticipated to not only bolster the renewable energy capacity of African nations but also stimulate job creation and enhance local industries by introducing advanced technologies and practices.

ACWA Power’s operational model emphasizes long-term partnerships with African governments and utilities, engaging in public-private partnerships (PPPs) that bring stability and scalability to energy projects. By collaborating with African governments, the company aligns its projects with national energy policies and targets, fostering a cooperative framework that benefits both local economies and long-term investors.

As Africa faces a growing demand for sustainable infrastructure to support its burgeoning population, ACWA Power’s projects in energy and water desalination stand as integral components of the continent’s development strategy. From power generation to clean water provision, the company’s work aligns with the United Nations’ Sustainable Development Goals (SDGs), particularly those targeting clean water and affordable, clean energy.

ACWA Power’s Portfolio: A Global Leader in Sustainable Solutions

ACWA Power, headquartered in Riyadh, Saudi Arabia, is a publicly listed company on the Saudi Stock Exchange (TADAWUL:2082). Established in 2004, the company has grown into the world’s largest private water desalination company, with a presence in 13 countries across the Middle East, Africa, Central Asia, and Southeast Asia. ACWA Power’s portfolio encompasses 90 projects at various stages of development, with a combined investment value of USD 94.7 billion (SAR 355.47 billion) and a generation capacity of 65 GW of power and 8 million cubic meters of desalinated water per day. The company’s achievements span power generation, water management, and emerging green technologies like hydrogen production, all developed through innovative public-private partnerships and utility outsourcing models.

Global Impact and Record-Low Costs

ACWA Power has achieved record-low costs in power generation and water desalination. The company’s ability to reduce costs while maintaining quality has positioned it as a major player not only in Africa but also globally. Its projects provide bulk services to national utilities, supporting sustainable infrastructure in diverse markets and serving as a model for affordable clean energy.

Conclusion: Driving Transformational Change in Africa and Beyond

With a mission to deliver affordable and reliable energy solutions that foster economic and social development, ACWA Power is set to drive transformational change in Africa. The company’s investments in renewable energy, water desalination, and green hydrogen development exemplify a comprehensive approach to sustainable growth. As demand for energy and water resources intensifies, ACWA Power’s commitment to innovation and sustainability positions it as a key enabler of Africa’s economic advancement.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

28th October, 2024