Scatec wins preferred bidder status on 273 MW of solar in S Africa

Scatec ASA (OSL:SCATC) announced it has won preferred bidder status on 273 MW of solar projects in the fifth round of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

The Norwegian renewable power producer has been successful with three projects, it said, without naming them.

The Oslo-based company will sign 20-year power purchase agreements (PPAs) for the output of the plants and will own a 51% stake in each of them. The rest of the ownership will be held by local Black Economic Empowerment partner H1 Holdings and a community trust.

In addition to having majority stakes, Scatec will provide engineering, procurement and construction (EPC), operation and maintenance (O&M) and asset management services to these solar parks. It expects financial close to be achieved in the first half of next year and to complete the projects by the end of 2023.

All in all, South Africa’s Department of Mineral Resources and Energy named 25 preferred bidders in this latest tender. Mainstream Renewable Power dominated the round with 12 successful projects of which a share will go to H1 Holdings as well.

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