Renewable energy generator Scatec has started construction of three PV+storage projects in South Africa with a total of 1.1GWh of storage capacity after completing the financial settlement.
After being put into operation, these projects will have 540MW of photovoltaic power generation and 225MW/1140MWh of battery storage capacity. The project design reduces the scale of connection to the grid, and according to the 20-year power purchase agreement signed with the local Kenhardt area, the project will Only provide it with 150MW of dispatchable power resources.
Scatec started construction six weeks after securing power purchase agreements for the three projects, a year after it won the tenders under South Africa’s Risk Mitigation Power Procurement Programme (RMIPPP), which aims to alleviate power capacity shortfalls .
Scatec said the project would also be the largest investment in its history, with a total expenditure of ZAR 16.4 billion, funded by the equity of the project owners, with Scatec accounting for 51% and H1 Holdings accounting for 49%. H1 is the local black economic empowerment partner for the project, as one of the requisites for participating in the bid is the participation of local black businesses.
Scatec, which will be responsible for EPC contracting, long-term operations and asset management, said the project development and EPC contracts will bring the company $800 million in revenue.
Grid operator ESKOM has also participated in the RMIPPP tender, which will see around 1GW of energy storage power and several GWh of storage capacity entering the South African grid in the next few years.
