Scatec wins preferred bidder status in 2-GW procurement round in S Africa

Dyason's Klip 1 solar park in Upington, South Africa. Image by Scatec Solar (

June 2 (Renewables Now) - Norwegian renewable power producer Scatec ASA (OSL:SCATC) has won the preferred bidder status for 150 MW of contracted solar capacity in a mixed tender for risk-mitigation power capacity in South Africa.

Under the Risk Mitigation IPP Procurement Programme (RMIPPPP), South Africa is looking to procure 2 GW of risk-mitigation capacity from a number of sources, including renewables, so as to alleviate power supply constraints and lower the use of diesel-based peaking electrical generators.

Oslo-based Scatec said on Tuesday its award concerns three projects of 50 MW each, which are part of a larger scheme combining 540 MW of solar with 225 MW/1,140 MWh of battery storage capacity. The tariffs for Kenhardt 1, 2 and 3 fall within the range of the previously awarded preferred bidders, Scatec said without giving details.

Electricity from the three sites in the Northern Cape Province will be sold under a 20-year power purchase agreement (PPA) with a paid capacity charge.

Scatec expects to reach financial close on the scheme this year, estimating the required investment at around USD 1 billion (EUR 818.6m). Around 80% of the funding is to be sourced from project debt from commercial banks and development finance institutions. The equity component will be covered by Scatec, with a 51% holding of the total equity, and Cape Town-based H1 Holdings, which will own the remaining 49%.

Scatec will be in charge of the engineering, procurement and construction (EPC) activities and will also take care of the plants’ operations. It expects to hook the facilities to the grid by end-2022.

In March, South Africa gave the preferred bidder status to 1,845 MW of projects under the RMIPPPP solicitation. The proposals involved solar and wind power, as well as liquefied natural gas and battery storage capacity. The weighted average price of the proposals stood at ZAR 1,575 (USD 114.38/EUR 93.6) per MWh.

(USD 1.0 = EUR 0.819)

(ZAR 10 = USD 0.726/EUR 0.594)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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