Contact:
Norfund:
Petter Bjønnstu
Phone: +47 994 99 477
E-Mail: petter.bjonnstu@norfund.no
Scatec Solar:
Sven Røst
Phone: +932 53 196
E-mail: sven.rost@scatec.no
Oslo, August 2012
Scatec Solar has signed an agreement with Norfund (The Norwegian Investment Fund for Developing Countries) where the fund will invest up to NOK 190 million in Scatec Solar´s solar PV projects in South Africa, expanding the parties´ previous agreement where NOK 80 million were to be invested in Scatec Solar´s first project in South Africa.
Scatec Solar has so far been awarded three projects totaling 190 MW of PV through the South African energy program aiming to increase the utilization of the country´s major renewable energy resources (Renewable Energy Independent Power Producer Procurement Program). The solar plants will be owned, built and operated by a subsidiary of Scatec Solar in collaboration with local partners, including Old Mutual and Standard Bank. The South African electricity company, Eskom, will buy the power through a 20 year Power Purchase Agreement.
– We are very pleased to have Norfund as a co-investor in our first project in South Africa, says Alf Bjørseth, Chairman of Scatec Solar. – Solar energy has very low operating costs compared with most other sources of energy, but requires in turn large investments up front. Therefore, access to capital at reasonable terms is essential to develop and implement profitable solar projects. Norfund plays an important role both through its direct investment, but also by opening the door for other partners and funding sources, said Bjørseth.
Norfund has previously committed to investing NOK 80 million in equity in the 75 MW solar plant Scatec Solar was awarded in the first round of the Renewable Energy program. In the second round, Scatec Solar was named preferred provide for another two solar PV projects, 75 and 40 MW, respectively. Scatec Solar also has the intention to present bids for up to four new projects with a total capacity of 148 MW in the third round of the tenders. Norfund intends to provide up to 21 percent of the equity in each of these projects, totaling investments of up to another NOK 190 million.
– It is gratifying that a Norwegian company like Scatec Solar now experiences a breakthrough in renewable energy in South Africa. Solar power as part of the essential infrastructure will be very important for the development of the region, and it shows that it is possible to combine environmental goals with economic growth and poverty reduction, says Kjell Roland, CEO of Norfund.
South Africa has implemented an ambitious program to boost the country´s electricity production, with a substantial part to come from renewable sources like solar and wind. The country still struggles with an electricity demand larger than the production capacity. Major investments in the power sector are necessary to keep pace with the growth in the economy and population. The Construction of new coal fired power plants have been initiated with loans from the World Bank, but such projects are time-consuming compared with the development of solar power.
South Africa has excellent solar conditions and Scatec Solar´s first 75 MW PV plant will produce about 145 million kWh annually, enough to supply more than 35 000 South African households with electricity.
More about Norfund at www.norfund.no.
See also press reports:
Press report bistandsaktuelt.no
Press release norfund.no