Jul 07 | 2023
Scatec has reached financial close on its Grootfontein solar projects
The renewable energy developer secured the three Grootfontein solar projects during South Africa’s fifth bidding round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) in 2021. They are the first solar projects of that round to reach financial close.
The financial close announced last week marks another milestone towards groundbreaking. The $270m projects will be financed by a $241m non-recourse project finance debt provided by the Standard Bank of South Africa as mandated lead arranger. The rest will be financed by equity from the owners, including Scatec (51%) and H1 Holdings (46.5%), with the Grootfontein Local Community Trust holding the remaining 2.5%.
“Scatec will be the Engineering, Procurement and Construction (EPC) provider and provide Operation & Maintenance as well as Asset Management services to the power plants. Construction start is expected during the first quarter of 2024,” Scatec said in a statement.
The three solar plants will lead to a combined abatement of 630,000 tonnes of CO2 emissions annually and add to the company’s existing portfolio in South Africa. Scatec entered South Africa in 2010 and has since then developed projects totaling 448 MW of renewable energy capacity.
The financial close announced last week marks another milestone towards groundbreaking. The $270m projects will be financed by a $241m non-recourse project finance debt provided by the Standard Bank of South Africa as mandated lead arranger. The rest will be financed by equity from the owners, including Scatec (51%) and H1 Holdings (46.5%), with the Grootfontein Local Community Trust holding the remaining 2.5%.
“Scatec will be the Engineering, Procurement and Construction (EPC) provider and provide Operation & Maintenance as well as Asset Management services to the power plants. Construction start is expected during the first quarter of 2024,” Scatec said in a statement.
The three solar plants will lead to a combined abatement of 630,000 tonnes of CO2 emissions annually and add to the company’s existing portfolio in South Africa. Scatec entered South Africa in 2010 and has since then developed projects totaling 448 MW of renewable energy capacity.
