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Scatec secures 150 MW of South African tender as part of solar-plus-storage project

The Norwegian renewables business said the PPA-linked generation capacity is part of a wider, $1 billion complex which will feature 540 MW of solar project capacity and 225 MW/1.14 GWh of battery storage.

Norwegian renewables company Scatec says it has secured 20-year power purchase agreements (PPAs) for 150 MW of solar generation capacity which will be part of a wider 540 MW project in South Africa’s Northern Cape, which will be linked to 225 MW/1.14 GWh of battery storage.

A stock market update issued by Scatec yesterday did not specify the tariff secured by the three 50 MW slices of solar capacity but stated: “The tariffs awarded to the projects fall within the range of the previously awarded preferred bidders.” In March, pv magazine reported the 2 GW ‘rescue mitigation power procurement program’ held by the South African government had attracted final tariff bids ranging from ZAR1,468-1,885/MWh (€87.73-112.65), for an average auction price of ZAR1,575/MWh.

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The technology-neutral procurement round was held to secure additional power generation capacity to plug shortfalls in supply in South Africa, particularly to the nation’s mining sector.

pv magazine did not name Scatec among the preferred bidders to the tender in March but mentioned “a further three eligible bids totaling 150 MW.” Our previous report also indicated the preferred bidders named by the government, when it published the results, included proposals for solar and wind power facilities, as well as battery storage and liquefied natural gas – including floating gas plants.

However, Scatec yesterday said its solar capacity was the only proposal to feature renewable energy generation. pv magazine has asked the developer if it can explain the apparent discrepancy.

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Yesterday’s update stated the overall solar-plus-storage project will cost an estimated $1 billion, 80% of which will be debt funded by banks and “development finance institutions,” with financial close expected this year. Scatec said it expects to obtain grid connection by the end of next year.

Scatec will provide engineering, procurement and construction services for the complex as well as operations and maintenance. The Norwegian developer will own 51% of the project with Cape Town-based developer H1 Holdings owning the balance under the Black Economic Empowerment policy brought in by the government to help address the imbalances of the apartheid era.

pv magazine previously reported, the tender – which closed for bidding in December – attracted 28 bidders for 5,117 MW of capacity.

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Source: pv magazine