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Norwegian Company to Build R13.5 Billion Solar-Battery Projects in South Africa

Norwegian Company to Build R13.5 Billion Solar-Battery Projects in South Africa

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Norwegian renewable energy company Scatec has been awarded preferred bidder status on three projects as part of South Africa’s Risk Mitigation Power Procurement Programme (RMIPPP).

Scatec said that that deal will see 540 MW solar and 225 MW/1,140 MWh battery storage built in the Northern Cape.

The projects awarded to Scatec are the only projects with preferred bidders status exclusivity making use of renewable energy technology, making it arguably one of the largest single-site solar and storage hybrids in the world, it said.

The group said that the solar and storage solution will provide dispatchable power from 05h00 to 21h30 and will deliver much-needed power to the South African economy.

The power will be sold under a 20-year power purchase agreement with a paid capacity charge.

Scatec said that financing has already been sourced as part of the bidding process and that project capex is estimated to be $1 billion (R13.55 billion), which will be funded by project finance debt from a consortium of commercial banks and development finance institutions.

Scatec said it will own 51 % of the equity in the project with H1 Holdings, its local Black Economic Empowerment partner owning 49%.

Financial close is expected later in 2021 with grid connection by the end of 2022.

“This is truly a great milestone for Scatec and renewable energy. We are demonstrating that cost competitive dispatchable solar power can be delivered at large scale with short implementation time.

“This confirms that renewable energy is an ideal choice for driving electricity generation growth in Africa and other developing countries”, said chief executive Raymond Carlsen.

Source: businesstech

Anand Gupta Editor - EQ Int'l Media Network