Scatec funds 540MW South African solar portfolio

• Construction will now kick off at three PV sites as well as a 225MW storage facility in the Kenhardt region

Scatec has reached a $962m economic close on a 540MW solar and battery storage portfolio in South Africa.

Construction will now begin on three PV sites and also a 225MW storage center in the Kenhardt region of the Northern Cape Province which are being established under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP).

As soon as operational the project will certainly provide 150MW of dispatchable power under a 20-year Power Purchase Agreement to the area.

It will be the largest investment in Scatec's background with an overall capex of around $962m to be funded by equity from the proprietors and $727m in non-recourse project financial debt, moneyed in local currency.

The debt will be provided by a group of lending institutions which includes The Standard Bank Group as arranger and British International Investments, Scatec said.

Scatec will certainly own 51% of the equity in the project, with H1 Holdings, a regional Black Economic Empowerment companion having 49%.

The renewables designer will also be the engineering, procurement and also construction supplier and also provide procedure and also maintenance as well as asset management solutions to the PV plants as part of a $800m contract.

Scatec president Terje Pilskog claimed: "Achieving commercial and also financial close for the Kenhardt projects reveals true commitment by our Scatec group and partners.

" This project is an initial of its kind and also will be among the world's biggest solar and battery centers.

" We are now expecting starting construction of this special and also exciting project, which will be a significant contribution to South Africa's economic situation as well as green power industry.

Sub-Saharan Africa general manager Jan Fourie stated: "This is a crucial landmark in the procurement of renewable energy and proves that the field can be trusted to provide much-needed electrical power capacity to the grid."