Norwegian independent power producer (IPP) Scatec has announced the refinancing of three of its operating solar PV plants in South Africa. These plants have a combined capacity of 190 MW.
Kalkbult, Dreunberg and Linde are the solar plants refinanced by Scatec in South Africa. The Norwegian independent power producer’s (IPP) share of the refinancing proceeds, based on its 45% stake in these plants, amounts to 540 million South African rand, or 36 million dollars.
According to the Raymond Carlsen-led company, the main terms of the deal include an increase in the amount of debt, a reduction in margins, an extension of the life and the release of cash from debt reserve accounts. According to Scatec, this transaction has a minor impact on the expected future dividends of the three power plants. According to the IPP, the refinancing will also benefit the South African authorities through a 50:50 profit split between the power plants’ shareholders and the authorities.
Read also- SOUTH AFRICA: Anglo American agrees with EDF for 3 to 5 GW of clean energy
“The refinancing of our South African power plants demonstrates the potential for financing and value creation in our operating portfolio when the local financial markets mature,” says Mikkel Tørud, Scatec’s CFO.
The Kalkbult, Dreunberg and Linde solar power plants have been operational since 2014 and have a combined capacity of 190 MW. The plants were built under the Renewable Energy Independent Power Producer Supply Programme (REIPPP). The electricity produced by these plants is sold to the state-owned utility Eskom under power purchase agreements (PPAs) that run for about 20 years.
Jean Marie Takouleu
