Scatec clinches preferred bidder status for R13bn solar cluster

NORWAY-based renewable energy group, Scatec ASA, has been awarded preferred bidder status for a R13 billion solar cluster project in in the Free State province, which will add a total of 846MW to the electricity grid.

- BANELE GININDZA

In a statement on Wednesday, Scatec confirmed it had been awarded preferred bidder status in the seventh round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

The project, known as the Kroonstad PV cluster, is expected to operate under 20-year Power Purchase Agreements (PPAs), ensuring a steady supply of sustainable energy once completed.

This latest development follows the Department of Electricity and Energy's strategic reallocation of energy capacity from onshore wind to solar photovoltaic (PV) solutions.

The cluster will comprise three solar power plants, Oslaagte Solar 2 (293MW), Oslaagte Solar 3 (293MW), and Leeuwspruit Solar (260MW).

The estimated total project cost for the solar cluster project is R13bn ($735 million). The projects will be financed with up to 90% non-recourse project debt and the remaining by equity from the owners.