Scatec has reached a $962m financial close on a 540MW solar and battery storage portfolio in South Africa.
Construction will now start on three PV sites and a 225MW storage facility in the Kenhardt region of the Northern Cape Province which are being developed under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP).
Once operational the project will provide 150MW of dispatchable power under a 20-year Power Purchase Agreement to the region.
It will be the largest investment in Scatec’s history with a total capex of approximately $962m to be financed by equity from the owners and $727m in non-recourse project debt, funded in local currency.
The debt will be provided by a group of lenders which includes The Standard Bank Group as arranger and British International Investments, Scatec said.
Scatec will own 51% of the equity in the project, with H1 Holdings, a local Black Economic Empowerment partner owning 49%.
The renewables developer will also be the engineering, procurement and construction provider and provide operation and maintenance as well as asset management services to the PV plants as part of a $800m contract.
Scatec chief executive Terje Pilskog said: “Achieving commercial and financial close for the Kenhardt projects shows true commitment by our Scatec team and partners.
“This project is a first of its kind and will be one of the world’s largest solar and battery facilities.
“We are now looking forward to starting construction of this unique and exciting project, which will be a major contribution to South Africa’s economy and green energy sector.
Sub-Saharan Africa general manager Jan Fourie said: “This is an important milestone in the procurement of renewable energy and proves that the sector can be relied upon to deliver much-needed electricity capacity to the grid.”