San Giorgio Group Case Study: Eskom CSP 100MW Plant South Africa

This case study examines the 100 MW Eskom CSP power tower plant in Upington, South Africa, focusing on its financial structure, risk management, and the role of public funding in deploying emerging concentrated solar power (CSP) technologies.

• The Eskom CSP project is fully publicly financed, relying on a combination of low-cost debt from six international finance institutions (IFIs) and balance sheet finance from Eskom. This structure was necessary because the estimated levelized cost of electricity for CSP (0.28-0.33 USD/kWh) is significantly higher than other options like hydro (0.06-0.13 USD/kWh), new coal (0.08-0.16 USD/kWh), or open cycle gas turbines (0.14-0.24 USD/kWh).
• To mitigate technology risks stemming from a lack of in-house experience with non-hydro renewable energy, Eskom employed external expertise. This included contracting an Owner’s Engineer (OE) for design optimization and procuring an engineering, procurement and construction (EPC) contractor to handle construction and operate the plant for five years while training Eskom staff.
• The project is designed to provide significant energy system benefits and cost reductions due to its 100 MW capacity and 9-12 hours of thermal energy storage. It is expected to have a higher potential for reducing technology costs and building local supply chains than other CSP projects currently under development in South Africa.
• While IFI loans provided essential low-cost capital (less than 2% in foreign currency compared to approximately 12% for local commercial loans), they introduced challenges regarding procurement standards and foreign exchange risk. Hedging these exchange rate risks can increase the cost of debt by up to 8% depending on the currency and hedging level.

APA

Climate Policy Initiative (2014). San Giorgio Group Case Study: Eskom CSP 100MW Plant South Africa. https://www.climatepolicyinitiative.org/publication/san-giorgio-group-case-study-eskom-csp-100mw-plant-south-africa/

Chicago

Climate Policy Initiative. San Giorgio Group Case Study: Eskom CSP 100MW Plant South Africa. 2014. https://www.climatepolicyinitiative.org/publication/san-giorgio-group-case-study-eskom-csp-100mw-plant-south-africa/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=San Giorgio Group Case Study: Eskom CSP 100MW Plant South Africa |date=13 June 2014 |url=https://www.climatepolicyinitiative.org/publication/san-giorgio-group-case-study-eskom-csp-100mw-plant-south-africa/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2014san, author = {{Climate Policy Initiative}}, title = {{San Giorgio Group Case Study: Eskom CSP 100MW Plant South Africa}}, institution = {Climate Policy Initiative}, year = {2014}, month = jun, url = {https://www.climatepolicyinitiative.org/publication/san-giorgio-group-case-study-eskom-csp-100mw-plant-south-africa/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }