Scatec Solar to develop 75-MW solar farm in S Africa

Dec 12, 2011 - Norwegian photovoltaic (PV) solutions provider Scatec Solar said last week it would build a 75-MW solar park in South Africa under the national Renewable Energy Independent Power Producer Programme.

The company was chosen as the preferred bidder in a tender launched by South Africa's Department of Energy in line the country's plans to have 17,800 MW of renewable energy capacity by 2030 and to trim its dependence on oil and natural gas.

Construction of the EUR-200-million (USD 267m) solar PV facility is to kick off by July 2012, while commercial operation is expected in August 2013. South Africa's biggest commercial lender Standard Bank is to help finance the project. Scatec Solar will hold a majority stake in the consortium that will construct the PV plant, while Standard Bank, South African Old Mutual Life Assurance Co and Simacel will own different stakes in the project.

The solar park, located in the sunny Northern Cape region, will produce over 145 million kWh a year, or as much as is needed to power 35,000 local households, Scatec estimates. The power plant is also seen to offset some 125,000 tonnes of carbon dioxide emissions annually, the developer added. All of the produced electricity will be sold to South Africa's state-owned utility Eskom (PINK:ESKAY) under a 20-year power purchase agreement.

(EUR 1.0 = USD 1.334)

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