Scatec ASA has been selected as the preferred bidder for a major solar power project in South Africa, totaling 846 megawatts (MW) of capacity. The project, known as the Kroonstad PV cluster, was awarded under the seventh round of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), managed by the Department of Electricity and Energy (DEE). This round saw a shift in focus, reallocating capacity from onshore wind to solar PV.
The Kroonstad cluster will be located in the Free State province and will include three large-scale solar power plants: Oslaagte Solar 2 and Oslaagte Solar 3, each with a capacity of 293 MW, and Leeuwspruit Solar, with 260 MW. Once operational, the plants will deliver clean and reliable energy to the national grid under 20-year Power Purchase Agreements (PPAs).
Terje Pilskog, CEO of Scatec, stated, “It excites me to announce another important milestone for Scatec in South Africa and for the country’s renewable energy transition. The Kroonstad PV Cluster represents a significant addition to Scatec’s growing renewable energy footprint in Sub-Saharan Africa. Being selected once again under the REIPPPP reaffirms our role as a trusted partner and a leading developer in the region. We commend the government’s continued commitment to enabling clean, secure, and affordable energy.”
Alberto Gambacorta, EVP and GM for Sub-Saharan Africa, remarked, “I am proud to announce Scatec’s largest megawatt award to date in South Africa, which is a testament of our organisation’s strong track record, capabilities and competitive edge. South Africa is one of our core markets and we are dedicated to continuing to grow our renewables capacity in the country in alignment with the nation’s energy transition agenda. We are now looking forward to reaching financial close and start construction of the PV cluster during 2026.”
The total estimated cost for developing the cluster is around ZAR 13 billion (approximately USD 735 million). The project will be primarily funded through up to 90% non-recourse debt, with the remaining financing covered by equity contributions from the project owners. Scatec will hold a 50.90% equity stake in the project. The remaining ownership will be split between Stanlib’s infrastructure fund via its renewable energy platform Greenstreet owning 46.50%, and a Community Trust holding 2.6%.
Scatec will also take responsibility for the engineering, procurement, and construction (EPC), as well as operations, maintenance (O&M), and asset management (AM) services for the entire project. Financial close is anticipated in 2026, after which construction will begin. The project is expected to make a significant contribution to South Africa’s renewable energy goals, while also supporting local communities through job creation and ownership benefits.
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