Eskom postpones until further notice PPA for 100-MW CSP park

South African utility Eskom will put off “until further notice” the signing of a 100-MW power purchase agreement for the Redstone concentrating solar power (CSP) project by California-based SolarReserve and Saudi ACWA Power.

The deal for the Redstone Solar Thermal Power Project was scheduled to be signed on Thursday. The utility said the postponement “is purely on conditions precedent not being met”.

“The contracts awarded under bid windows 3.5, 4 and 4.5 are expected to be concluded during the 2016/17 financial year,” the utility added.

The news comes soon after Eskom revealed in a letter to the government that it may refuse to enter into new PPAs with independent power producers (IPPs) beyond bidding window 4.5 of the renewable energy independent power producer procurement (REIPPP).

The 20-year PPA for the Redstone CSP complex is valued at ZAR 50 billion (USD 3.5bn/EUR 3.2bn) over the term of the contract. The project, featuring 12 hours of full-load energy storage, was selected in the 3.5 bid window under the REIPPP.

Redstone's developers planned to start construction in September, according to a recent report by Ecofin.

Eskom has already signed renewable IPP contracts for 3,901 MW, with 2,145 MW already hooked to the grid. It expects 1,030 MW, mostly wind and solar, to be commissioned in 2016/17.

(ZAR 10 = USD 0.700/EUR 0.637)

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