Engineering and technology company Abengoa is developing the plant near the town of Pofadder.
The facility will collect solar energy using parabolic-trough technology and convert it into electricity in the steam cycle. Through a built-in molten salt storage system or the thermal energy storage, the plant will have capacity to store energy during off-peak hours and dispatch it during peak hours.
The DBSA said it was encouraged by the confidence EIB had shown in its power-generation investment strategy. The strategy was designed to improve the security of energy supply and optimise South Africa’s energy mix.