As part of the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP), independent power producer (IPP) Scatec has signed power purchase agreements (PPAs) for three solar projects with storage in the Northern Cape Province of South Africa.
With Scatec, the South African government is accelerating the implementation of the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP). Under this initiative of the South African Department of Energy and Mineral Resources, Scatec is developing three projects that are now sanctioned by Power Purchase Agreements (PPAs). The solar power plants will be built in Kenhardt, a town in the Northern Cape.
The project will provide 150 MW of dispatchable renewable energy from 5am to 9.30pm, based on a hybrid installation of 540 MWp of solar PV capacity and 1.1 GWh of battery storage. These are the first projects developed under the RMIPPPP in South Africa.
Financial close in 60 days
The signing of the PPAs forces Scatec to accelerate the closing of the financing of Kenhardt’s solar projects. The Oslo, Norway-based IPP has 60 days following the signing of the PPA to close the financing for its three projects. The energy company should respect this deadline as its financial partners have already been identified.
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In addition to the investment company H1 Holdings, which holds a 49% stake in the three solar projects, Scatec (51%) will be able to count on Standard Bank, the main arranger of its financial mobilisation. The Johannesburg-based bank will also act as debt provider, alongside a group of lenders including British International Investment (BII), which is increasing its financing for renewable energy in South Africa.
The future solar plants will add to Scatec’s portfolio in the rainbow nation. IPP has an installed capacity of 448 MW in the southern African country, which is generated from solar photovoltaic plants built under the Renewable Energy Independent Power Producer Procurement Programme (REIPPP).
Jean Marie Takouleu