Oslo-based Scatec ASA, a renewable energy company, has been awarded preferred bidder status for a 288 MW solar project in the seventh round of the Department of Mineral Resources and Energy Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
The projects will deliver much needed energy under a 20-year PPA once fully operational.
According to the Department of Mineral Resources and Energy, commercial close for the REIPPPP Bid Window 7 is expected in the second half of 2025.
“This marks another significant achievement for Scatec in South Africa and for the renewable energy transition in the country. Today’s award reaffirms our standing as a leading renewable energy player in South Africa. We applaud the South African government’s commitment and dedication to the renewable energy procurement programmes,” says Scatec CEO Terje Pilskog.
Scatec will own 50.9% of the equity in the projects and will provide engineering, procurement, and construction (EPC) services, as well as operations & maintenance (O&M), and asset management (AM) services to the projects.
Oslo-Based Scatec Says SA Will Remain A Focus Market Even After The Sale Of Its Solar Power Plant In Upington
By Gugu Lourie
Scatec ASA today closed the previously announced transaction to divest the Upington solar plants in South Africa.
Scatec, a renewable energy company in emerging markets, is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange
The gross consideration for divestment of Scatec’s 42% equity-share in the 258-megawatt (MW) plants is R973 million (NOK 546 million).
The company said as previously communicated the proceeds will be recycled into new investments within renewable energy.
“We are very pleased to secure a value accretive transaction, in line with our strategy to optimise our portfolio and recycle capital. South Africa remains a focus market for us, and we will continue to build scale through new investments in the country. I would like to thank all parties involved in the transaction,” says Scatec CEO Terje Pilskog
The net accounting gain is estimated to be NOK 791 million on a consolidated basis and NOK 348 million on a proportionate basis. The difference is primarily explained by the D&C margin related to the projects which has been eliminated in the consolidated statement of financial positions.
Scatec will continue to provide operations & maintenance (O&M) and asset management services to the plants.
