The three photovoltaic solar projects have been awarded during the fourth round of the "Renewable Energy IPP Procurement Programme".
The projects will be located in Upington in the Northern Cape region, and project financing is already arranged as part of the bid preparations. Financial close is expected later in 2015, while construction start is expected in early 2017 to align with the timeline of required grid construction activities in the area. The three projects are the following:
Scatec Solar will build, own and operate the solar power plants with a 42 percent shareholding. Norfund, the Norwegian Investment Fund for Developing Countries, will hold 18 percent of the equity, while the balance will be held by a Trust channeling dividends from the projects to economic development initiatives in the local communities.
CEO Raymond Carlsen in Scatec Solar commented:
"We are very impressed by the great determination by the South African government to use large scale renewables to strengthen power supply in the country. With this award, the people of South Africa will access more clean, reliable and cost competitive electricity in many years to come. The three solar power plants will be built on directly adjacent sites, and will combined represent one of the largest solar parks ever realized. The award confirms our position as the leading solar IPP in Africa. We have the largest asset base found in South Africa and we continue to develop a significant project pipeline across the African continent."
Currently Scatec Solar holds gross 427 MW in operation and under construction. With this project award, Scatec Solar will increases its asset base by 60% through another 258 MW of projects with secured power purchase agreements in 'project backlog'. In addition, Scatec Solar has a solid project pipeline of more than 400 MW across Africa, Middle East, Americas and Asia.