Scatec Solar reaches financial close for 258 MW in South Africa

Oslo, Norway – Norwegian based solar company Scatec Solar has signed a power purchase agreements for 258 MW in Upington, South Africa.

According to the company, Scatec Solar and partners have reached financial close for these projects involving a total investment of ZAR 4.76 billion (EUR 0.324 bn). A consortium of commercial banks and DFIs with Standard Bank in the lead are providing non-recourse project finance of ZAR 3.68 bn (EUR 0.25 bn), accounting for 77% of the total project cost.

Construction start is expected in the third quarter 2018 with grid connection towards the end of 2019. The plants are, on an annual basis, expected to produce 650 GWh of electricity and avoid about 550,000 tons of CO₂ emissions. Revenues in the first year of operations are expected to reach ZAR 720 million (EUR 49.0 mn). All contract terms are based on the original award in April 2015.

As Scatec Solar, the company will be the EPC provider for the projects and provide Operation & Maintenance as well as Asset Management services to the power plants.

About Scatec Solar Scatec Solar is an integrated independent solar power producer, delivering affordable, rapidly deployable and sustainable source of clean energy worldwide. As long term player, Scatec Solar develops, builds, owns, operates and maintains solar power plants, and already has an installation track record of 1,000 MW. Currently, the company is producing electricity from 322 MW of solar power plants in the Czech Republic, South Africa, Rwanda, Honduras and Jordan and another 434 MW are under construction.

Source: IWR Online, 14 May 2018