Scatec achieves fin close on 540-MW solar trio in S Africa

Norwegian renewables developer Scatec ASA (OSL:SCATC) announced today it has reached financial close on and started construction of three solar-plus-storage projects in South Africa with a combined power generation capacity of 540 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) and will feature 225 MW/1,140 MWh of battery storage capacity. They will provide 150 MW of dispatchable power to the Kenhardt region under a 20-year contract.

Scatec said it will invest a total of ZAR 16.4 billion (USD 955.8m/EUR 943.5m) in the three projects, representing the company’s largest capital expenditure ever. Being the project developer and also 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 will also 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.

(ZAR 1 = USD 0.058/EUR 0.058)

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