- Norwegian independent power producer (IPP) Scatec has completed the financing of its Grootfontein solar photovoltaic power stations in South Africa.
- The facilities, located in the Western Cape province, will have a combined capacity of 273 MWp.
In the advancement of its Grootfontein solar power facilities in South Africa, Scatec has attained a new milestone. The works are slated to begin in the first quarter of 2024, and the Norwegian Independent Power Producer (IPP) has received the necessary funds. Through a 4.5 billion South African rand ($241 million) non-recourse finance arrangement offered by Standard Bank of South Africa, which is serving as a mandated lead arranger, Scatec is funding its three solar power projects.
The remaining $270 million needed to finish the concessions awarded under the 5th Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) procurement window is being provided by developer Scatec. A 51% interest will be owned by the IPP. The remaining shares are held by the South African investment company H1 Holdings (46.5%) and the Grootfontein Local Community Trust (2.5%).
Scatec will provide engineering, procurement and construction (EPC) services for Grootfontein’s solar photovoltaic plants. “South Africa is a priority market and this value-added investment, with returns above our break-even point, is in line with our strategy of profitable growth and expansion in sub-Saharan Africa. We look forward to starting construction next year and reaching commercial operation in 2025, while powering around 100,000 homes in the region,” says Terje Pilskog, Scatec’s CEO.
Under a 20-year power purchase agreement (PPA), the electricity produced in the Western Cape will be injected into the electrical grid of the state-owned utility Eskom. According to Scatec, its three solar power facilities will cut CO2 emissions by 630,000 tonnes annually.