Central Energy Fund, a state-owned company of South Africa will invest in the 100-MW Redstone concentrating solar power (CSP) park, a united project of Saudi Arabia's ACWA Power and US-based SolarReserve.
Two parties will invest in renewable energy projects, starting with the Redstone scheme in South Africa's Northern Cape province.
The investment will be made under a cooperation agreement between the fund and ACWA Power, the latter announced on Friday.
"We are pleased to enter into this agreement, which further strengthens our efforts supporting South Africa's renewable energy program," said ACWA Power's chairman Mohammad Abunayyan, without giving a specific description on the future collaboration.
Construction of the Redstone CSP park in Postmasburg, near Kimberley, is hoped to be launched by the end of this year. The complex will comprise of 12 hours of full-load energy storage using SolarReserve's melted salt energy storage technology in a tower configuration.
Once it starts, it will be capable to give to the grid around 480,000 MWh of electricity annually, and it will be able to supply more than 210,000 local homes even during evening peak requirement periods.