by EBR WRITER
Norwegian renewable energy company Scatec Solar, and its partners, have signed power purchase agreements (PPAs) for 258MW of solar plants in South Africa. With the agreements signed, Scatec Solar expects to achieve financial close for the three solar PV plants, which are estimated to cost ZAR4.76bn ($400m) in total, in near future.
In 2015, Scatec Solar was selected as preferred bidder for the construction of the three solar projects in Upington in the fourth bidding round under the Renewable Energy Independent Power Producer Procurement (REIPPP) Program in South Africa.
Scatec Solar CEO Raymond Carlsen said: “South Africa continues to be an important market for Scatec Solar and we are very pleased to see that the renewables program now is finally moving forward.
“We believe solar energy will continue to play an important role in the energy mix and provide strong support for economic growth in the country in the years to come.”
A non-recourse project finance of ZAR3.68bn ($310m), which accounts for 77% of the total project cost, is being provided by a consortium of commercial banks and development finance institutions (DFIs) with Standard Bank.
Scatec Solar, which will build, own and operate the solar power plants, will have a shareholding of 42%. Other partners include KLP Norfund Investments with 18% stake, the surrounding Community of Upington with 5% interest and a South African Black investor with 35% stake.
The partners are planning to commence construction on the solar projects in the third quarter of 2018 and connect to the grid towards the end of 2019.
Intended to generate 650GWh of electricity, the plants are expected to avoid about 550,000 tons of CO2 emissions an annual basis.
In addition to providing engineering, procurement and construction (EPC) services, Scatec Solar will provide operation & maintenance as well as Asset Management services to the solar plants.