Renewable energy producer Scatec has had three solar projects, totalling 273 MW, included under Bid Window 5 of the Department of Mineral Resources and Energy's Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
Scatec will sell power from the solar plants to power utility Eskom under a 20-year power purchase agreement.
Scatec will own 51% of the equity in the projects, with the company's local black economic empowerment partner H1 Holdings owning 46.5% and a community trust the remaining 2.5%.
Scatec will be the engineering, procurement and construction provider and provide operation and maintenance, as well as asset management services for the power plants.
Financial close is expected in the first half of 2022, with grid connection and commercial operation to be achieved by the end of 2023.
“This is another great milestone for Scatec in South Africa and for renewable energy in the country. We are pleased with the South African government’s commitment to the REIPPPP and their announcement within the set timeframe.
"The award is a manifestation of our position in South Africa as the leading solar independent power producer," says Scatec CEO Raymond Carlsen.