Norwegian independent power producer (IPP) Scatec has commissioned a 540MW solar-plus-storage project in South Africa.
Located in the Northern Cape province, the Kenhardt project consists of three solar plants and a battery energy storage system (BESS) with a capacity of 225MW/1,140MWh.
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Under a 20-year power purchase agreement (PPA) with state-operated utility Eskom signed last year, the project will deliver 150MW of power to the national grid between 5am and 9:30pm.
The project had an investment of nearly US$1 billion and was Scatec’s largest project commitment, with the debt provided by a group of lenders which includes the Standard Bank Group, acting as lead arranger, and British International Investment (BII).
The combination of solar PV with battery storage will allow for dispatchable power to be supplied during peak demand from the battery and improve grid stability, an issue that has been persistent in South Africa for years.
With a strong presence in South Africa, as shown in the chart below, Scatec reached financial close on three solar plants earlier this year which will have a combined capacity of 273MW.
Terje Pilskog, CEO of Scatec, said: “This is more than just a power plant; it’s a testament to the limitless potential of integrating solar and battery storage to meet the evolving energy needs of today and tomorrow.”
Early in the year, the IPP sold its 42% equity share in a 258MW solar PV project in the country with the capital used to invest in renewables.