Cox Abg Secures 51% Stake in South Africa’s 50-MW Khi Solar One

Spain-based energy and water utility Cox Abg Group SA (BME:COXG) has finalised the acquisition of a 51% stake in the 50-MW Khi Solar One concentrated solar power (CSP) plant in South Africa.

The deal was completed after receiving approval from South Africa’s department of mineral resources and energy and financiers. The remaining 49% stake is held by local partners, Cox said.

Khi Solar One is located near the town of Upington in the Northern Cape province. It consists of the central tower, a field of heliostats and thermal storage. It currently generates 100 GWh per year.

Cox will now take over the operation and maintenance of the plant until 2036, and will also make improvements to optimise its performance and increase its current annual generation by over 30%.

The company expects Khi Solar One to generate an annual EBITDA of EUR 21 million (USD 22.1m) to EUR 23 million, it said.

The plant has a 20-year power purchase agreement (PPA) with South African power company Eskom, which expires in 2036. The project was financed by South African and international multilateral banks and development banks.

(EUR 1.0 = USD 1.051)