Scatec awarded 540 MW solar plant with storage in a federal government tender in South Africa
- Scatec has today been awarded Preferred Bidder standing on three projects totaling 150MW (3x50MW) of Contracted Capacity, by the Department of Mineral Resources and Energy in South Africa under the technology agnostic Risk Mitigation Power Procurement Programme (RMIPPP). The tariffs awarded to the projects drop within the series of the formerly granted preferred bidders.
The three projects (Kenhardt 1-3), in total consisting of 540 MW solar and 225 MW/1,140 MWh battery storage space, were bid based on sites located in the sundrenched Northern Cape Province of South Africa. The projects awarded to Scatec are the only projects with favored bidders standing exclusivity using renewable resource technology, making it perhaps one of the largest single site solar + storage crossbreeds worldwide.
"This is truly an excellent landmark for Scatec and renewable energy. We are showing that price competitive dispatchable solar energy can be supplied at large scale with short application time. This verifies that renewable resource is a suitable choice for driving electrical power generation development in Africa and other developing countries", states Chief Executive Officer Raymond Carlsen.
The solar and storage space remedy will certainly give dispatchable power from 5:00 remain in the morning to 21:30 at night and will deliver much needed power to the South African economic climate. The power will certainly be offered under a 20-year Power Purchase Agreement with a paid capacity cost.
Funding has currently been sourced as part of the bidding process. Project capex is approximated to be USD 1 billion and will be funded by project finance financial obligation from a consortium of business financial institutions and Development Finance Institutions with anticipated financial debt utilize of 80%. Scatec will certainly have 51 % of the equity in the project with H1 Holdings, our regional Black Economic Empowerment partner having 49%. Scatec will be the Engineering, Procurement and Construction (EPC) company and offer Operation & Maintenance along with Asset Management services to the power plants.
Financial close is expected later in 2021 with grid connection by the end of 2022.
"This honor even more cements Scatec's setting as the leading solar IPP in South Africa and on the African continent. To day, we have actually efficiently completed six solar plants under the nation's well well-known REIPPP programme and employ greater than 200 individuals, which is set to expand additionally. With Round 5 of REIPPP introduced in April, we are looking forward to more structure on this solid structure and experience from effective solar projects and include other sustainable modern technologies to our profile", states Carlsen.
Scatec's integrated modern technology approach reinforces the competitiveness of renewables and expands the market possibility. The company sees substantial possibilities within hybrid remedies and is currently working with establishing several projects using solar and batteries to develop solid renewable power; and likewise incorporating solar with hydro to raise value suggestion and competition of hydro. In addition, Scatec collaborates with companions to incorporate competitive renewable resource with industrial projects. In total, concerning 15 percent of the firm's project pipeline consists of crossbreed remedies projects.