Norwegian independent power producer (IPP) Scatec is closing the financing for its three Kenhardt solar projects and starting construction in the Northern Cape province of South Africa. The installations will be equipped with battery storage systems.
Scatec has announced the start of construction work on the three Kenhardt solar photovoltaic power plants in South Africa’s Northern Cape province. The Norwegian independent power producer (IPP) reaches this milestone following the financial close of the three projects, which are expected to cost 16.4 billion South African rand, or $962 million, to implement.
Within this budget, R12.4 billion ($727 million) will be raised from a group of lenders including Standard Bank Group as arranger and British International Investment (BII). Under the co-development agreement, Scatec will own 51% of the project, while South African investor H1 Holdings will own 49%. IPP is the engineering, procurement and construction (EPC) service provider. The Oslo-based company will also provide operation and maintenance services and asset management services for the power plants.
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“Achieving commercial and financial close on the Kenhardt projects shows a real commitment from the Scatec team and its partners. This project is a first of its kind and will be one of the largest solar and battery installations in the world,” says Terje Pilskog, Scatec’s CEO.
The three projects under construction will have a combined solar capacity of 540 MW and battery storage capacity of 225 MW/1,140 MWh, and will provide 150 MW of dispatchable power under a 20-year power purchase agreement (PPA) to the Kenhardt region. These projects are being implemented under the Independent Power Producer Procurement for Risk Mitigation Program (IPPMP). Scatec is the first IPP to participate in this South African government initiative.
Jean Marie Takouleu
