Scatec's solar-storage project endures blow in S Africa, 2021 target missed out on

• Norwegian green power producer Scatec ASA (OSL: SCATC) has been forced to reschedule building of its Kenhardt 540-MW solar-plus-storage project in South Africa because of a hold-up in the government authorization process, and revoke projects in Brazil as well as Ukraine.

The Oslo-based company safeguarded preferred bidder status for Kenhardt's 150 MW in South Africa's Risk Mitigation Power Procurement (RMIPP) programme in June this year, and expected to get to monetary nearby the end of 2021. On Friday, Scatec stated it had actually been educated of the authorization delay for RMIPP, which pushes the economic close to completion of January 2022.

The building and construction of Kenhardt, which will certainly also add 225 MW/1,140 MWh of battery storage space, is now attended commence a long time in the very first quarter of 2022.

Scatec likewise claimed that the renewable resource industry in presently being affected by cost inflation and supply chain interruptions, the context that its projects in the backlog as well as pipeline can not prevent. Consequently, Scatec decided not to move forward with 166 MW of projects in Brazil and Ukraine, claiming that "projected margins as well as returns fall listed below the Company's obstacle rates". It claimed it anticipates to record overall problems of NOK 40 million (USD 4.6 m/EUR 4m) to NOK 50 numerous development expense pertaining to the projects.

Because of this, Scatec will not have the ability to get to the target of 5.9 GW in operation or under construction by the end of 2021. With projects in Brazil and also Ukraine no more in the plans, Scatec's backlog has actually slendered to 1,915 MW.

"It is frustrating not to reach the 2021 growth target, yet with our track record and also strong pipe we will remain to deliver development and also lasting value. South Africa is our home market, as well as we are looking forward to delivering much needed electricity under the RMIPP programme", CEO Raymond Carlsen stated in a declaration.

Scatec has not quit on the target to have 15 GW in operation or unfinished by the end of 2025.