Scatec Solar Announces Completion of 258 MW Solar Project in South Africa

Scatec Solar has started commercial operation of the third 86 MW solar plant in Upington, South Africa, completing the 258 MW solar power complex.

Scatec Solar has announced that it has, along with its partners, grid-connected and started commercial operation of the third 86 MW solar plant in Upington, South Africa, completing the 258 MW solar power complex. The 86 MW facility, known as Dyason’s Klip 2, is expected to produce 217 GWh annually.

“We are proud to have achieved this major milestone. Power supply is considered critical infrastructure, and we are pleased to be supporting South African power supply with renewable energy to another 40,000 households annually, says Raymond Carlsen, CEO of Scatec Solar.

The Upington solar power complex is estimated to deliver annual production of 650 GWh, providing clean energy to around 120,000 households and lead to the abatement of more than 600,000 tonnes of CO₂ emissions annually.

The three projects in Upington were awarded in April 2015 in the fourth bidding round under the Renewable Energy Independent Power Producer Programme (REIPP) in South Africa. Scatec Solar owns 42 percent, Norfund holds 18 percent, the surrounding Community of Upington 5 percent and H1 Holdings, a South African Black investor holds the remaining 35 percent of the equity. 

In February, the firm had announced the early commercial operation for another 86 MW unit, the second of three, of the 258 MW solar power complex in Upington, South Africa. The 86 MW facility, known as Dyason’s Klip 1, is also expected to produce 217 GWh of clean electricity for around 40,000 households annually.

Dyason’s Klip 1 was earning 60 percent of the tariff until the scheduled commercial operation date which was expected in mid-March.

In January, the firm reported strong growth in the fourth quarter of 2019 with proportionate revenues of NOK 1,642 million (1,666) (USD 181 million), and EBITDA of NOK 434 million (329). Power production reached 298 GWh on a proportionate basis, up almost threefold from the same period last year, adding to existing predictable and long-term cash flows.