- Scatec has been awarded 50MW of contracts for each of the Kenhardt 1, 2 and 3 projects in the Western Cape.
- Scatec has previously constructed six solar plants under the REIPPP.
- The company plans to expand its renewable energy portfolio to 15GW over the next four years.
Norwegian clean energy developer, Scatec has been selected by the Department of Mineral Resources and Energy (DMRE) as a preferred bidder for 540MW of solar projects with 225MW/1,140MWh of battery storage in South Africa’s recent emergency tender.
Scatec will develop the projects across three sites in the Northern Cape Province of South Africa. The company has been awarded 50MW of contracts for each of the Kenhardt 1, 2 and 3 projects. The company will set on reaching a financial close this year as the deadline is July 2021, with grid connection targeted for the need of 2022. Scatec will be responsible for engineering, procurement and construction (EPC), operations and maintenance (O&M) and asset management service provider.
According to the SDMRE, projects under this tender, including the Kenhardt 1-3, must provide dispatchable power to the grid between 5 am and 9:30 pm daily. Projects will have a 20-year power purchase agreement (PPA) with a paid capacity charge.
Scatec has estimated that the costs for the three solar-plus-storage projects will be US$1 billion. The company intends to raise funds through debt financing from a consortium of commercial banks and Development Finance institutions with an 80% expected debt leverage.