SOUTH AFRICA: Stanlib to buy 258 MWp Upington solar complex

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SOUTH AFRICA: Stanlib buys 258 MWp Upington solar complex © Scatec

Norwegian independent power producer (IPP) Scatec has announced the sale of its shares in the Upington solar PV complex in South Africa. In addition to Scatec's shares, asset manager Stanlib is buying all of Norfund's shares.

Scatec is divesting part of its assets in South Africa. The Norwegian independent power producer (IPP) sells all its shares in the Upington solar photovoltaic complex. Its shares are being bought by a subsidiary of Stanlib Infrastructure Fund II, managed by Stanlib Asset Management Proprietary, an asset manager based in Johannesburg, South Africa.

The Upington solar complex is 42% owned by Scatec, which is selling its shares for NOK 569 million, just over $57 million. The Norwegian Investment Fund for Developing Countries (NORFUND), which holds 18% of the shares, has also decided to sell its shares to Stanlib. If the transaction is approved by the relevant authorities in South Africa, Stanlib will own 60% of the complex, with the remaining shares held by the South African investment company H1 Holdings (35%) and the community trust (5%).

Scatec’s investments in South Africa

Located in the Northern Cape, the Upington solar complex consists of three plants, each with a capacity of 86 MWp, which have been in commercial operation since 2020. These facilities have a combined capacity of 258 MW, which Scatec estimates to produce 650 GWh per year, enough to power 120,000 South African homes while helping to reduce emissions by 600,000 tonnes of CO2 equivalent over the same period.

Read also- SOUTH AFRICA: Globeleq refinances its 31 MWp Soutpan solar plant

Scatec and its partners were awarded the concession by the South African government under the fourth round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPP). “Today’s transaction is in line with our strategy to optimise our portfolio, as presented at our Capital Markets Update in September 2022, and will free up capital for new investments in renewable energy,” says Terje Pilskog, Scatec’s president and CEO.

The Oslo, Norway-based company is continuing its investments in South Africa, notably through the Kenhardt solar project. It involves the installation of 540 MWp of installed solar capacity, as well as a battery storage system capable of storing 225 MW of electricity. Scatec is developing this project under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP).

Jean Marie Takouleu


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