Norway-based renewable energy group, Scatec ASA, has been preferred for an R13 billion solar cult project in the preferred status in the free state province, Which adds a total of 846 MW to the electricity grid.
In a statement on Wednesday, SCATEC confirmed that it had been preferred the preferred status in the seventh round of the Independent Power Producer Procurement Program (REIPPP) of the renewable energy.
The project, known as the crown city of PV cluster, is expected to operate under the 20-year Power Purchase Agreements (PPAs), which completes a steady delivery of sustainable energy.
This latest development follows the Ministry of Electricity and the strategic realization of energy capacity through onshore wind to photovoltaic solutions for solar energy to solar energy.
The cluster comprises three solar energy plants, Oslagte Solar 2 (293mw), Oslagte Solar 3 (293mW) and Lion sprout Solar (260 MW).
The estimated total project costs for the solar product project are R13BN ($ 735 million). The projects will be financed with a maximum of 90% non-recourse project debt and the remaining equity of the owners.
Scatec CEO, Terje Pilskog, said South Africa was one of the core markets of the group with the latest prize The largest megawatt price so far in the country.
“I am aware of another important milestone for Scatec in South Africa and for the transition from the renewable energy of the country. The crown city of PV cluster is an important addition to the growing footprint of SCATEC in Sub-Saharan Africa,” Pilskog said.
“Again Selected under the REIPPPP, our role as a trusted partner and a leading developer in the region confirms. We praise the continuous dedication of the government to make clean, safe and affordable energy possible.”
SCATEC will have 50.90% of the equity in the project with the Stanlib infrastructure fund (via its platform for renewable energy, Greenstreet), together with Redstreet that has 46.50% and a community confidence with 2.6%.
SCATEC will offer engineering, purchasing and construction (EPC), activities and maintenance and asset management services to the project. Financial Close is expected in 2026.
“We are now looking forward to achieving financial closure and to start the construction of the PV cluster in 2026,” said Alberto Gambacorta, Executive Vice President of Scatec and general director of Sub-Saharan Africa.
The group announced in December that it had officially started producing and supplying electricity to the National Grid of the three Kenhardt plants in the North Cape.
The Kenhart project, one of the world’s first and largest hybrid solar and battery storage facilities, has an installed solar capacity of 540 MW and a battery storage capacity of 225 MW/1 140MWH.
Scatec said that the project delivers 150 MW of passable electricity throughout the year from 5 a.m. to 9 p.m. to the National Grid under a 20-year-old electricity buy agreement with Eskom.
The group is also in an advanced phase of the three Grootfontein Solar projects that have been won as part of the fifth bidding round of the Department of Mineral Resources in 2021.
The solar energy plants will be the first Scatec activa that are located in the province of West -Cape of the country and have a total capacity of 273 MW solar energy.
Once operational, the projects will supply the much-needed renewable energy under a 20-year-old electricity purchase agreement. The three solar plants will lead to a combined rescue of 630,000 tons of CO2 emissions every year.
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