The Renewable Energy Independent Power Producer Program was launched by the Government in 2011. To date, close to 9 GW of renewable energy has been procured by the Government, of which 1.5 GW is solar. The country aims to install more than 8 GW of solar by 2030. Scatec entered the South African market in 2010. With 448 MW in operation Scatec is the leading solar player in the country.
We develop new projects across Africa from our offices in Cape Town. This is also our engineering hub and our 24/7 operated global Control & Monitoring centre is located here.
Scatec was in June 2021 awarded preferred bidder status on three projects by the Department of Mineral Resources and Energy in South Africa under the technology agnostic Risk Mitigation Power Procurement Programme. The three projects totaling 540 MW solar and 225 MW/1,140 MWh battery storage bid based on sites located in the sundrenched Northern Cape Province of South Africa. The projects have a total estimated capex of USD 1 billion.
The power will be sold under a 20-year PPA. The project is expected to be funded by project finance debt from a consortium of commercial banks and Development Finance Institutions with expected debt leverage of 80%. Scatec will own 51 % of the equity in the project with H1 Holdings, our local Black Economic Empowerment partner owning 49%. Financial close is expected later in 2021 with grid connection by the end of 2022.
The three solar power plants are situated on adjacent plots, 25 km outside of Upington in the Northern Cape. Scatec was awarded preferred bidder status for the Upington project in the fourth bidding round under REIPPP in 2015. The projects hold 20-year PPAs with Eskom, the national utility company. The equity partners for all three solar plants are Norfund, BEE Industrial (H1) and BEE Trust. Lenders are Standard bank + syndicate lenders.
The Kalkbult plant, situated in the Northern Cape region, is one of the largest solar plants in South Africa. The first project commissioned under Round 1 REIPPP in March 2014, and was the first REIPPP project to be grid connected and operational in South Africa.
It is the only fixed tilt plant in the portfolio, with an exceptional production record contributing to regional growth and portfolio performance. The project holds a 20-year PPA with Eskom, the national utility company. The equity partners are Stanlib, Old Mutual, Simacel and Community Trust. Lenders are Standard Bank + syndicate lenders.
Dreunberg is situated in the Eastern Cape of South Africa. Commissioned in December 2014, Dreunberg was the second project won under Round 2 of the REIPPP Program. As a tracking plant, it yields the highest production in the South African portfolio. The project holds a 20-year PPA with Eskom, the national utility company. The equity partners are Stanlib, Simacel, Community Trust. Lenders are Standard Bank + syndicate lenders.
Situated in the arid, Karoo, region of the Northern Cape; Linde benefits from extremely high levels of irradiation. Linde was commissioned in July 2014, three months before scheduled deadline. As an early generator, electricity was sold to the utility and provided to households earlier than anticipated. The project holds a 20-year PPA with Eskom, the national utility company. The equity partners are Stanlib, Old Mutual, Simacel and Community Trust. Lenders are Standard Bank + syndicate lenders.