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

The Eskom CSP project in South Africa is a 100 MW power tower plant utilizing 9-12 hours of thermal energy storage and a dry-cooled steam cycle. Because the levelized cost of electricity for CSP (0.28-0.33 USD/kWh) exceeds that of coal, hydro, and gas, the project relies on 100% public financing, including USD 995 million in highly subsidized debt from six international finance institutions (IFIs) with rates below 2%. Eskom manages technology risks by contracting an Owner's Engineer for design and an EPC contractor for construction and early operation. The project aims to reduce technology costs, create local supply chains, and improve energy security in a country targeting 3.3 GW of CSP by 2030.

• The Eskom CSP project is entirely publicly funded, distinguishing it from other CSP projects where private actors contribute. This is necessary because the estimated levelized cost of electricity for CSP (0.28-0.33 USD/kWh) is significantly higher than 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).
• International finance institutions (IFIs) provided critical low-cost debt to make the project viable. Six IFIs committed USD 995 million in subsidized debt with interest rates under 2% in foreign currency, whereas local commercial loans for CSP in South Africa are approximately 12%.
• Eskom mitigated its lack of in-house experience with non-hydro renewables by employing external experts. This included contracting an Owner's Engineer (OE) for design optimization and procuring an engineering, procurement and construction (EPC) contractor to handle construction and the first five years of operation.
• The project's scale and configuration—specifically its 100 MW capacity and high storage volume—are intended to drive down technology costs and establish local supply chains, which is a primary goal for South African policymakers to create jobs.

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} }