Norwegian-based energy developer Scatec ASA has been awarded preferred bidder status on a new 846 MW solar power project by South Africa
It covers the so-called Kroonstad PV cluster, awarded by the Department of Electricity and Energy (DEE), under the seventh round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
Located in Free State province, the ‘cluster’ will comprise three solar power plants: Oslaagte Solar 2 (293 MW), Oslaagte Solar 3 (293 MW) and Leeuwspruit Solar (260 MW).
The award follows a re-allocation of megawatts under the seventh bid window from onshore wind to solar PV, Scatec noted in a statement.
Once operational, the various projects will provide clean and reliable energy under 20-year power purchase agreements (PPAs).
Scatec CEO Terje Pilskog called it another significant milestone for the company in South Africa, and one that marks its largest megawatt award to date in the country.
“The Kroonstad PV Cluster represents a significant addition to Scatec’s growing renewable energy footprint in sub-Saharan Africa,” he said.
“South Africa is one of our core markets and we are dedicated to continuing to grow our renewables capacity in the country in alignment with the nation’s energy transition agenda.”
Scatec entered the South African market in 2010, and with 730 MW in solar operation already, it is a leading player in the country's renewable energy space.
Cape Town is also where it maintains its engineering hub, a control and monitoring centre, and where it develops other new projects across Africa.
The estimated total project cost for the Kroonstad PV cluster project is ZAR 13 billion (US$735mn).
This will be financed with up to 90% non-recourse project debt and the remaining by equity from the owners.
Scatec will own 50.90% of the equity in the project with Stanlib’s infrastructure fund (through its renewable energy platform, Greenstreet), along with Redstreet owning 46.50% and a Community Trust holding 2.6%.
Scatec will provide engineering, procurement, and construction (EPC), operations and maintenance (O&M), and asset management (AM) services to the project, with financial close expected next year.
“We are now looking forward to reaching financial close and start construction of the PV cluster during 2026,” said Alberto Gambacorta, Scatec’s executive vice-president and general manager for sub-Saharan Africa.
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