(Ecofin Agency) – South Africa is going through an unstable energy situation, due in particular to repetitive power cuts. To counter the crisis, the State is counting on renewable energies and the acceleration of their development.
The renewable energy solutions provider, Scatec, announced on Tuesday, July 19, the start of construction of the three solar projects in Kenhardt, in the Northern Cape province, in South Africa. The implementation of the project should require a total investment of 962 million dollars.
At the end of construction and once operational, the plants will total a solar capacity of 540 MW and a battery storage capacity of 225 MW/1,140 MWh. They will also supply 150 MW of electricity, which will be redistributed under a 20-year power purchase agreement with the Kenhardt region.
Scatec is starting #construction of #solar and battery project in South Africa following reaching financial close. https://t.co/D7GbwXrYLp
— MDA Attorneys (@MDA_Attorneys) July 20, 2022
Scatec was awarded in June 2021, the status of preferred bidder for the three projects by the South African Ministry of Mineral Resources and Energy.
« The achievement of commercial and financial close for Kenhardt’s projects demonstrates a true commitment on the part of the Scatec team and its partners. This project is a first of its kind and will be one of the largest solar and battery installations in the world said Terje Pilskog, CEO of Scatec.
These projects will enter the construction phase in a South Africa which has recently experienced multiple power outages, driving energy availability to its lowest levels since 2019. A situation due to aging infrastructure, particularly coal-fired power plants.
The construction of these 540 MW solar projects is coming at a peak, given that the country, in addition to seeking energy security, wants to depend less and less on coal, which represents 81.4% of its energy mix.
Abdullah Diop
