Scatec reaches financial close, starts construction of 540 MW solar and storage projects in the Northern Cape

Scatec ASA has begun construction on the three Kenhardt solar and energy storage projects in Northern Cape Province, South Africa under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP).

Scatec will own 51% of the project's equity, while H1 Holdings will own 49% interest. Scatec will provide Engineering, Procurement, and Construction (EPC) services as well as Operation and Maintenance (O&M) and Asset Management to the power plants.

Once operational, the project will have a total solar capacity of 540 MW and a battery storage capacity of 225 MW/1,140 MWh, and will provide 150 MW of dispatchable power to the Kenhardt region under a 20-year Power Purchase Agreement in a country that is currently experiencing power shortages. The approximately ZAR16.4 billion (US$962 million) investment will be financed by the owners' equity and ZAR12.4 billion (US$727 million) in non-recourse project debt will be provided by a group of lenders led by The Standard Bank Group and British International Investment.