Scatec Solar has signed an agreement with the South African government to supply another 115MW of solar PV to the country under the South African Renewable Energy Independent Power Producer Programme. The project will follow the 75MW Kalkbult facility the company is already involved in developing. The Kalkbult project is due for completion in October this year, almost two months ahead of schedule.
“We are looking forward to realize two more PV projects as part of South Africa’s renewable energy program” said Raymond Carlsen, CEO of Scatec Solar. “With the experience gained from the Kalkbult project, our experienced team and partners will be even better prepared to take on the challenges of these large undertakings. We have for more than three years been actively developing project opportunities in South Africa, and being able to realize our plans is of great satisfaction to us and will benefit both the regions and the local communities in which we operate.”
As was the case with the Kalkbult project, the two new projects will be developed by Scatec Solar through its South African joint-venture company Scatec Solar SA. The plants will be located at Linde, in the Northern Cape, and Dreunberg in the Eastern Cape. Both regions are sun-drenched areas that boast some of the best conditions for solar power anywhere in the world. The combined annual production will be in excess of 225 million kWh per year, enough electricity for 53,000 South African households. The power will be fed into the local grid and sold to the national utility, Eskom, through a 20-year Power Purchase Agreement (PPA). The two plants will also displace some 190,000 tonnes of carbon per year.
The capital investment for the projects amounts to around € 300 million, financed through South Africa’s Standard Bank. A consortium consisting of Scatec Solar, Standard Bank, Old Mutual Life Assurance, Norfund and Simacel will provide the equity finance.
The projects will create significant job opportunities, as has already been the case with the Kalkult project where Scatec has recruited and trained more than 500 employees with more than 400 employees actually working on the construction site itself during peak periods. A proportion of the revenue from the parks will go towards Socio-economic development initiatives in the area with the primary focus being on skills development, educational and health initiatives.
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