Norwegian renewable energy company Scatec has been awarded preferred bidder status on three projects as part of South Africa’s Risk Mitigation Power Procurement Programme (RMIPPP).<\/p>\n
Scatec said that that deal will see 540 MW solar and 225 MW\/1,140 MWh battery storage built in the Northern Cape.<\/p>\n
The projects awarded to Scatec are the only projects with preferred bidders status exclusivity making use of renewable energy technology, making it arguably one of the largest single-site solar and storage hybrids in the world, it said.<\/p>\n
The group said that the solar and storage solution will provide dispatchable power from 05h00 to 21h30 and will deliver much-needed power to the South African economy.<\/p>\n
The power will be sold under a 20-year power purchase agreement with a paid capacity charge.<\/p>\n
Scatec said that financing has already been sourced as part of the bidding process and that project capex is estimated to be $1 billion (R13.55 billion), which will be funded by project finance debt from a consortium of commercial banks and development finance institutions.<\/p>\n
Scatec said it will own 51 % of the equity in the project with H1 Holdings, its local Black Economic Empowerment partner owning 49%.<\/p>\n
Financial close is expected later in 2021 with grid connection by the end of 2022.<\/p>\n
“This is truly a great milestone for Scatec and renewable energy. We are demonstrating that cost competitive dispatchable solar power can be delivered at large scale with short implementation time.<\/p>\n
“This confirms that renewable energy is an ideal choice for driving electricity generation growth in Africa and other developing countries\u201d, said chief executive Raymond Carlsen.<\/p>\n