Scatec Solar, has signed the final agreements with South Africa’s Department of Energy to build two more PV projects totaling 115 MW under the second round of the South African Renewable Energy Independent Power Producer Program.  

The plants will be located at Linde in Northern Cape and Dreunberg in Eastern Cape, both sun drenched regions that boasts some of the best conditions for solar power anywhere in the world. Combined annual production will be in excess of 225 million kWh per year, enough to cover the electricity demand of 53 000 South African households. The power will be fed into the local grid and sold through a 20-year Power Purchase Agreement with the national utility company, Eskom.

The capital investment for the two projects is in the range of € 300 million and will be financed through South Africa’s largest commercial bank, Standard Bank. The consortium providing the equity finance consists of Scatec Solar as the largest majority owner, Standard Bank, Old Mutual Life Assurance Company, Norfund and Simacel.

VERD Q.I. has been appointed as the Technical Adviser of the equity partners and has advised them on the structuring of the EPC and O&M agreements with Scatec Solar for the construction of both plants.