Massive Solar Boost! Scatec Wins 846 MW South Africa Project!
Big news for South Africa's renewable energy sector! Scatec ASA has just been awarded preferred bidder status for a massive 846 MW solar PV project in the Free State province. This landmark win comes as part of the seventh round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), orchestrated by the Department of Electricity and Energy (DEE).
Kroonstad PV Cluster: Powering the Future
The project, dubbed the Kroonstad PV cluster, will consist of three solar power plants: Oslaagte Solar 2 (293 MW), Oslaagte Solar 3 (293 MW), and Leeuwspruit Solar (260 MW). Located in the Free State, this cluster promises to deliver clean and reliable energy to the grid for the next 20 years, thanks to power purchase agreements (PPAs).
Investment and Financing
The estimated total project cost is a whopping ZAR 13 billion (USD 735 million). Financing will be structured with up to 90% non-recourse project debt, with the remaining portion covered by equity from the owners. Scatec will hold a majority stake of 50.90% in the project.
Scatec's Commitment to South Africa
Scatec CEO Terje Pilskog expressed excitement about the project, highlighting its significance for both Scatec and South Africa's renewable energy transition. He emphasized the company's role as a trusted partner and leading developer in the region. Alberto Gambacorta, EVP and GM for Sub-Saharan Africa, echoed this sentiment, calling it Scatec's largest megawatt award to date in South Africa. He reaffirmed Scatec's dedication to growing its renewables capacity in the country, aligning with South Africa's energy transition goals.
- Oslaagte Solar 2: 293 MW
- Oslaagte Solar 3: 293 MW
- Leeuwspruit Solar: 260 MW
Construction of the PV cluster is expected to begin in 2026, pending financial closure. This project marks a significant step forward in South Africa's journey towards a cleaner and more sustainable energy future.