This case study examines the Concentrated Solar Power (CSP) plant in Upington developed by Eskom, South Africa’s state-owned electricity utility. Although not fully commissioned at the time of publication (2014), the project aimed to help meet the country’s rapidly increasing energy demand in accordance with its ambitious clean energy plan by reducing greenhouse gas emissions, establishing local supply chains and infrastructures, creating local jobs, and improving the region’s wealth. However, the project was considered exceptionally challenging and ambitious due to its proposed technology choice, generating capacity, and storage potential.\n\nThe project was entirely publicly financed through lending on a concessional basis from six international financial institutions (IFIs), supplemented by Eskom contributions. Project risks included debt financing and foreign exchange risk as well as various administrative and procurement requirements. The study evaluates Eskom’s risk management approach and provides recommendations to future developers and financiers seeking to replicate the project, noting that its scale suggests future, larger projects will see reduced costs and greater efficiency. Since concessional finance from external sources is limited and there are constraints on debt financing from public funds, the authors suggest that private actors such as local and foreign commercial banks are needed to deploy and establish further CSP plants.
This case study examines the Concentrated Solar Power (CSP) plant in Upington developed by Eskom, South Africa’s state-owned electricity utility. Although not fully commissioned at the time of publication (2014), the project aimed to help meet the country’s rapidly increasing energy demand in accordance with its ambitious clean energy plan by reducing greenhouse gas emissions, establishing local supply chains and infrastructures, creating local jobs, and improving the region’s wealth. However, the project was considered exceptionally challenging and ambitious due to its proposed technology choice, generating capacity, and storage potential.

The project was entirely publicly financed through lending on a concessional basis from six international financial institutions (IFIs), supplemented by Eskom contributions. Project risks included debt financing and foreign exchange risk as well as various administrative and procurement requirements. The study evaluates Eskom’s risk management approach and provides recommendations to future developers and financiers seeking to replicate the project, noting that its scale suggests future, larger projects will see reduced costs and greater efficiency. Since concessional finance from external sources is limited and there are constraints on debt financing from public funds, the authors suggest that private actors such as local and foreign commercial banks are needed to deploy and establish further CSP plants.