- Scatec ASA revealed it has attained financial close on and commenced construction of three solar-plus-storage projects in South Africa.
- The firm is committed to investing ZAR 16.4 billion into the three projects.
Scatec ASA, a Norwegian renewables developer, has revealed that it has attained financial close on and commenced the construction of three solar-plus-storage projects in South Africa. The projects have a joint output capacity of 504 MW.
The three Kenhardt projects in the Northern Cape Province will be realised under South Africa’s Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP). They are to include 225 MW/1,140 MWh of battery storage capacity. Under a 20-year contract, the projects will supply 150 MW of dispatchable power to the Kenhardt region.
Scatec committed to investing ZAR 16.4 billion into the three projects, making it the company’s largest capital expenditure. Being the project developer and an engineering, procurement and construction (EPC) contractor, the Oslo-based company estimates the value of this work at about ZAR 13.7 billion.
As a 51% stake owner, it will provide equity alongside local partner H1 Holdings and use ZAR 12.4 billion in non-recourse project debt from a group of lenders, including The Standard Bank Group as arranger and British International Investments.