Export Finance Norway (EKSFIN), a Norwegian state-backed export credit agency, is issuing a NOK 1.2 billion ($102 million) guarantee for three solar power plants in South Africa. The project, which is currently under construction in the Northern Cape, is a partnership between the South African government and the Norwegian company Scatec.
The Norwegian independent power producer (IPP) Scatec is implementing a project in the Northern Cape province of South Africa with the support of Export Finance Norway (EKSFIN). The Norwegian state-backed export credit agency is issuing a NOK 1.2 billion ($102 million) guarantee for the project in the Northern Cape.
It involves the development of 540 MWp of installed solar capacity, as well as a battery storage system capable of storing 225 MW of electricity. “This will be the largest investment in Scatec’s history and one of the largest projects of its kind in the world. The combination of solar energy and storage makes it possible to maintain a stable supply of clean electricity, even when the sun is not shining,” says EKSFIN.
The guarantee covering the risks of this clean energy project is issued in partnership with Nordea, a banking group based in Helsinki, Finland. “Reducing financial risks in the form of guarantees is often crucial for the realisation of international solar energy projects,” acknowledges Terje Pilskog, Scatec’s CEO.
IPP is developing its Kenhardt solar project under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP). Under the co-development agreement, Scatec will hold 51% of the project’s equity, while South African investor H1 Holdings will hold 49%. The solar project is expected to cost $962 million, which Scatec and H1 will raise from Standard Bank Group and British International Investment (BII).
Jean Marie Takouleu