Kathu Solar Park

Kathu Solar Park is a landmark project pioneering Concentrated Solar Power (CSP) technology in South Africa. 

Introduction

fact sheet

Kathu Solar Park is a landmark project pioneering Concentrated Solar Power (CSP) technology in South Africa. Operational since January 2019, this 100 MW solar giant utilises parabolic troughs and molten salt storage to deliver clean energy to the national grid, even after sunset. 

As part of the government’s REIPPPP Programme, the project contributed to job creation and socio-economic development in the surrounding communities. A socio-economic development plan was implemented aimed at enhancing the lives of residents in Kathu and its neighbouring communities. The plan prioritised infrastructure development, fostering a better learning environment, including access to nutritious meals for students. Recognising the social and economic realities of the area, the project avoids duplicating efforts by aligning with existing government initiatives, independent power producers, and mining operations. The plan was monitored and evaluated throughout its implementation. 

Construction commenced in May 2016 and the plant became operational in January 2019.

Investment: Total value of the project at the beginning was R 12 million and the current value: R 14 million 

Location: Gamagara, Northern Cape 

SDGs and NDP Outcomes impacted: SDG 7 Affordable and Clean Energy 

Project Financing
Public
E&S Risk category
Category 3
DBSA Involvement
  • Technology: Concentrated Solar Power technology
  • Installed capacity: 100 MW
  • Operational life cycle of the plant: 20 Years
  • Turbines built: 1 Steam Turbine
  • Capacity / MW Allocation: 100 MW
  • Reached commercial operation: 31 January 2019 
Sustainability Impact

Outcomes 

Households Supplied with Clean Energy 

  • 179 000 South African homes
  • The project supplies enough power to support with stable electricity during their peak demand period Emissions reductions
  • 6 million tonnes of CO2 avoided

Economic Impact 

  • Enterprise development black-owned, black-women-owned business and local SMMEs
  • R12 billion
  • Local content: 42.5%
  • 2.5% community trust ownership 

Job Creation 

  • 500 jobs created for SA citizens during construction
  • 73 employment opportunities, of which 94% are historically disadvantaged individuals 

Socio-Economic Development Programmes 

  • Annual "Back to School" programme (backpacks and school shoes)
  • Bursaries for access to tertiary education
  • Early Childhood Development (ECD) programmes
  • Access to clean drinking water (Babatas community & farmers)
  • Maths Programme to boost learner participation
  • Capacity building for children with disabilities
  • Occupational and physiotherapy access for rural communities
  • STEM Programme implementation
  • Graduate internships for employment access

Public Infrastructure Built Over Three Years 

  • Six infrastructure upgrades completed each year for three years
  • Continuous mentoring and support provided to the ECD centres
  • 25 unregistered ECD centres supported with registration and subsidy
  • Two ECD centre upgrades per year for first three years
  • Continuous mentoring and support to 25 ECD centres

 Challenges 

  • Relationship building in communities 

The socio-economic development team engaged municipalities, attending and organising periodic, structured sector engagements. 

  • A lack of reputable construction contractors was addressed by identifying potential construction contractors and developing skills to help equip reputable construction contractors.
  • Historic infrastructure programmes to be implemented technical team will be assisting in project oversight and sign-off of milestones.
Stats
Location

Gamagara, Northern Cape 

Installed capacity

100 MW 

Operational life cycle of the plant

20 years

CO2 reduced emissions

6 million tonnes of CO2 avoided

Households supplied with clean energy

±179 000 

Amount financed by DBSA

R14 Million