Scatec inks PPA for 273 MW of REIPPPP solar in S Africa
The Dyason's Klip 2 solar farm in Upington, South Africa. Image by Scatec Solar (www.scatecsolar.com)
Norwegian renewables developer Scatec ASA (OSL:SCATC) said on Thursday that it has signed power purchase and implementation agreements to push three solar projects totalling 273 MW in South Africa.
The company secured these projects under South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) Bid Window 5.
The project, dubbed Grootfontein, are sited in the Karoo region in the Western Cape Province.
Scatec said that it will own 51% of the equity in the schemes and serve as the EPC, O&M and asset management services provider for the solar farms. Cape Town-based H1 Holdings, Scatec’s local Black Economic Empowerment partner, will hold 46.5%, with a Community Trust owing the remaining 2.5%.
The Norwegian developer expects to reach commercial and financial close in the first half of 2023.
Once in operation, the Grootfontein solar farms will be capable of powering some 33,000 households. South African utility Eskom will procure the output from the plants under a 20-year power purchase agreement (PPA).
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