Scatec ASA, a Norwegian company has stated construction for a solar and battery power project which will supply 150 megawatts (MW) of South Africa’s grid
The project will have a total solar power capacity of 540 MW and battery storage capacity of 1140 MWh (225MW)
The company is building 3 projects in the Kenhardt Region of the Northern Cape under the South Africa’s Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP).
“This project is a first of its kind and will be one of the world’s largest solar and battery facilities,” said Scatec CEO Terje Pilskog.
“We are now looking forward to starting construction of this unique and exciting project, which will be a major contribution to South Africa’s economy and green energy sector.”
“This is an important milestone in the procurement of renewable energy and proves that the sector can be relied upon to deliver much-needed electricity capacity to the grid,” said Scatec sub-Saharan Africa general manager Jan Fourie.
This project is Scatec’s largest investment in history, with a total investment of approximately R16.4 billion, funded by owner’s capital and R12.4 billion non-recourse project debt.
Scatec owns 51% of the project’s stake and H1 holdings, a local black economic strengthening partner, owns 49%.
Additional capacity is expected to provide some relief to the utility Eskom and the country-flagging power grid.
Eskom poses significant risks to South Africa’s economy and public finances with government guarantees of up toR350 billion in debt.
The utility has consistently cut 6 000 MW off the grid over the past month, leaving the country in the dark for hours and further constraining industrial production and growth.
