Scatec, the Norwegian unbiased energy producer (IPP), has signed 273MW of energy buy agreements (PPAs) for photo voltaic tasks in South Africa below the federal government’s Renewable Power Unbiased Energy Producer Procurement Programme (REIPPPP).
The PPAs are for 3 tasks in Grootfontein, within the Western Cape province of the nation, and represent a 20-year settlement with South African vitality firm Eskom. Monetary and industrial shut on the agreements is anticipated in H1 2023.
“We’re proud to have reached this milestone within the procurement course of – and are excited to proceed delivering clear and dependable vitality in South Africa,” mentioned Scatec government vp for Sub-Saharan Africa, Jan Fourie.
“The South African authorities has proven sturdy dedication to ship in difficult instances – and as we speak’s achievement is a testomony to the arduous work and dedication of actors within the nation’s renewable vitality transition.”
In November, Scatec introduced plans to speculate US$950 million in renewables improvement by 2027, aiming so as to add 1.5GW of capability per 12 months. June noticed the corporate signal an extra 540MW of PPAs in South Africa.
In July this 12 months, South Africa revealed a collection of measures meant to bolster its renewables deployment within the face of the worldwide vitality disaster. Final month, through the COP27 convention, the European Funding Financial institution launched a tandem operation with the Growth Financial institution of South Africa to assist US$413 million price of investments into the nation’s renewable vitality sector.
Scatec could have a 51% stake within the Grootfontein tasks while H1 holdings, the corporate’s Black Financial Empowerment companion, will personal 46.5%. A group belief will maintain the remaining 2.5% fairness. Scatec may even deal with engineering, procurement and development in addition to operations and upkeep.
In October, Eskom signed agreements with 4 IPPs so as to add 2GW to its renewables capability.