Scatec secures funding for 1.1GWh PV+battery projects in South Africa

Scatec, a Norwegian renewable energy company with operations in South Africa, has secured a $102 million guarantee from Export Finance Norway (Eksfin), a state-backed financial institution, for the development of three solar-battery projects in the Northern Cape province of South Africa. The three projects total 540MW of solar PV and 225MW/1.14GWh of energy storage. By combining solar with storage, Scatec hopes to ensure that energy generated during peak hours can be used to meet demand during periods of low generation.

The Northern Cape projects will be Scatec's largest investment to date, and the financial risk package obtained from Eksfin will enable Scatec to obtain financing for the development of the projects from South Africa-based Standard Bank and United Kingdom development finance institution British International Investment (BII). Scatec will own 51% of the Kenhardt portfolio's equity, while H1 holdings will own the remaining 49%.

The funds will aid Scatec's expansion plans in South Africa's renewable energy sector, as the country seeks to accelerate the usage of renewable energy to prevent an energy crisis. A 20-year power purchase agreement was signed in June for the Kenhardt 1, 2, and 3 projects, which aim to link to the grid by the end of 2022.