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Scatec Solar Signs Power Purchase Agreements for 258 MW in South Africa

Oslo, Norway - Scatec Solar and partners recently signed all project documents and are shortly expected to achieve financial close for three solar PV plants in South Africa totaling 258 MW.

In April 2015, Scatec Solar was awarded preferred bidder status for the three projects in Upington in the fourth bidding round under the REIPPP (Renewable Energy Independent Power Producer Procurement) Programme in South Africa. Scatec Solar will build, own and operate the solar power plants with a 42 percent shareholding. KLP Norfund Investments will hold 18 percent, the surrounding Community of Upington 5 percent and a South African Black investor will hold the remaining 35 percent of the equity.

According to Scatec Solar the three projects involve a total investment of ZAR 4.76 billion (EUR 0.32 billion). A consortium of commercial banks and DFIs with Standard Bank in the lead are providing non-recourse project finance of ZAR 3.68 billion (EUR 0.25 billion), accounting for 77 percent of the total project cost.

Construction start is expected in the third quarter of 2018 with grid connection towards the end of 2019. Revenues in the first year of operations are expected to reach ZAR 720 million (EUR 48.5 million). All contract terms are based on the original award in April 2015.

Scatec Solar will be the Engineering, Procurement and Construction (EPC) provider for the projects and provide Operation & Maintenance as well as Asset Management services to the power plants.

The 258 MW adds to Scatec Solar's large portfolio of projects that have reached financial close over the last six months now totaling 1,092 MW in South Africa, Egypt, Brazil, Malaysia, Honduras and Mozambique.

When the new power plants are in operation Scatec Solar will hold a diversified asset portfolio with a capacity of 1,400 MW. This portfolio is expected to generate 2,900 GWh of electricity per year with annual revenues of about NOK 2.7 billion (EUR 0.28 billion) all supported by long term Power Purchase Agreements of 20-25 years. Scatec Solar's economic interest in the asset portfolio is 50 percent.



Source: IWR Online, 10 Apr 2018

 


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