Norway's Eksfin plans to provide $102 million in guarantees for three solar-plus-storage projects deployed by renewable energy developer Scatec in South Africa.
Scatec started deploying three solar-plus-storage projects in the Kenhart area at the end of July, with a total installed capacity of 540MW of solar power generation facilities and 225MW/1,140MWh of battery storage systems.
Eksfin provided the projects with a NOK 1.2 billion financial risk guarantee package, which according to previous reports accounted for about 10 percent of the total project cost. Grid operator ESKOM has procured power from these projects through its Risk Mitigation Independent Power Producer Procurement Programme (RMI PPPP), which aims to reduce grid capacity shortages.
The scheme aims to ensure that Scatec delivers the project as contracted by backing the financier Nordea's guarantee and securing the owner's equity.
The package includes loans to companies that have purchased projects, with guarantees that the loans will be repaid. Guarantees were also provided to the relevant authorities, grid operators and suppliers to Scatec.
Scatec will own 51% of the three solar-plus-storage portfolio, while local investor H1 Holdings will hold the remaining 49%. Scatec provides engineering, procurement and construction (EPC) services for these projects and will be a long-term operations and maintenance (O&M) and asset management service provider.
The three projects will be connected to the grid by the end of 2022 and signed a 20-year dispatchable energy power purchase agreement in June this year.
