3 March, 2022: Today, Scatec had the honour of hosting the Norwegian Minister of International Development, Anne Beathe Tvinnereim, at the Scatec office for Sub-Saharan Africa in Cape Town. The occasion was to announce what will be the first investment under Norway’s new Climate Investment Fund, managed by Norfund. The investment will enable Scatec’s partner H1 Capital to fund their equity share in Scatec’s 540 MW solar and 225 MW battery storage project in Kenhardt, South Africa.
Norfund, the Norwegian investment fund for developing countries, and CDC Group, the UK’s development finance institution (DFI) , are today announcing a commitment to invest ZAR 600 million in H1 Capital – a South-African owned and managed renewables investment and development company.
“As part of their commitments at COP26, governments across the world needs to follow the example set by the Norwegian government and Norfund. According to Bloomberg New Energy Outlook, the world needs USD 840 bn annual renewables investments to achieve the net-zero target. This investment is an important first step in what is a needed to fund the necessary renewable shift in South Africa, as it moves away from its dependency on coal and other fossil fuels.“, says Scatec CEO Raymond Carlsen.
Scatec and Norfund have a long-established relationship in South Africa and have played an important role in developing renewable energy in the country. The hybrid Kenhardt project will be amongst the largest in the world and a milestone demonstrating that dispatchable solar power can be cost-competitive. It will produce about 900 GWh of electricity and reduce CO2 emissions by 870 000 tonnes.
Tellef Thorleifsson, CEO of Norfund, commented: “We are delighted to be able to put the money to work quickly and effectively through what will be the first investment under the new mandate, with our existing partners in H1, CDC and Scatec, in projects in line with the energy plans of the South African government.”
Anne Beathe Tvinnereim, Norwegian Minister of International Development, commented: “I am confident that this first investment under the new climate mandate will be the first of many mutually beneficial partnerships that contribute to a just transition in South Africa and in the other markets that Norfund aims to prioritize”.