Scatec Solar achieves fin close for 258 MW of S African projects

Scatec Solar ASA (OSL:SSO) and its project partners have reached financial close for three solar projects in South Africa totalling 258 MW, the Norwegian independent solar power producer said today.

The news comes after the government of South Africa last week signed 27 delayed renewable power purchase agreements (PPAs) representing about 2,300 MW of capacity, including the three projects in Upington that were awarded to Scatec Solar in April 2015. Confirming the PPA signing last week, the Norwegian company said financial close for the projects was expected shortly. A consortium of commercial banks and development finance institutions (DFIs) led by Standard Bank is providing non-recourse project finance of ZAR 3.68 billion (USD 305m/EUR 248m). This accounts for 77% of the total cost of the projects.

Construction is expected to start in the third quarter of 2018, while connection to the the grid is anticipated towards the end of 2019.

Scatec Solar is providing engineering, procurement and construction (EPC), operation and maintenance (O&M), and asset management services for the projects. The company holds a 42% stake in the schemes. Norfund will own 18%, the surrounding community of Upington will have 5% and a South African Black investor will be the owner of the remaining 35%.

(ZAR 10 = USD 0.829/EUR 0.673)

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