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Scatec Solar begins construction on PV project in South Africa

Norway-based Scatec Solar has begun construction on a 75MW photovoltaic (PV) project in South Africa

Construction work was launched on the project recently after the company signed an agreement with the South African Department of Energy. 

The plant, which has been developed through Scatec Solar’s South African joint venture, Scatec Solar SA, will be built on the Northern Cape, in Kalkbult.

According to the company, the plant will be expected to generate enough energy to supply 35,000 households when complete next autumn. The electricity will be sold to Eskom as part of a 20 year agreement.

The €200mn (US$316.9mn) capital investment needed for the project will be provided by South Africa’s Standard Bank.

Scatec Solar will be the majority owner and provide equity financing, along with Standard Bank, Old Mutual Life Assurance Company and Simacel.

A company statement said, “The next two projects that Scatec Solar will construct in South Africa are expected to close in March 2013. When these are in production, Scatec Solar will have completed PV projects of 185MW in total.”

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