Northern Capes' new 540MW solar plant Go Back
Author: Marisan Hallett Date: 25 July 2022
A massive 540 megawatts solar and battery power project is underway in Kenhardt, Northern Cape. This will be one of the largest of its kind globally. Under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP), the Norwegian renewable energy company, Scatec, is steering the project.
'This project is a first of its kind and will be one of the world’s largest solar and battery facilities. We are now looking forward to starting construction of this unique and exciting project, which will be a major contribution to South Africa’s economy and green energy sector,' says Scatec chief executive Terje Pilskog.
As a leader and forerunner in the renewable energy industry, Scatec provides access to affordable and reliable green energy for the fast-growing market. They build, develop and operate their own renewable energy plants. Setting the target to have 15GW renewable plants in operation or under construction by 2025 with a united vision of “Improving our Future.”
There is significant potential in South Africa to share in the future of renewable energy. 93% of South Africa’s electricity is sourced from coal, and due to the economic growth and lack of investments towards power plants, South Africa has a substantial electricity shortage.
Chief executive of Scatec, Terje Pilskog. Photo: Scatec
'This is an important milestone in the procurement of renewable energy and proves that the sector can be relied upon to deliver much needed electricity capacity to the grid,' said Jan Fourie, Scatec’s general manager for Sub-Saharan Africa.
The RMIPPPP’s objective is to fill the supply gap, alleviating the strain of the electricity demand and reducing the use of fossil fuels. By employing a range of technologies, they strive to procure 2000MW.
When operational the project will have a solar capacity of 540MW, with battery storage capacity of 225MW/1140MWh, producing 150MW dispatchable power under the 20-year power purchase agreement. The completed project will provide clean energy for about 120 000 households and reduce more than 600000 tons of CO2 emissions annually.
Over one million solar panels will be used (with the fluctuating weather patterns taken into consideration). Inverters and batteries will be imported and components such as cables and transformers will be locally sourced. The project is estimated to take about 15 months to complete creating close to 3000 jobs.
The project is the largest investment in Scatec history with a capital expenditure of R28.8 billion – R16.4 billion is financed by equity from the owners and R12.4 billion from lenders, including the Standard bank group and British International Investments. Scatec will own 51% with 49% belonging to the local BEE partner, H1 Holdings. Scatec is the engineering, procurement and construction (EPC) service provider, providing operation-, maintenance-, and asset management services to the power plant.
This project is a major milestone in supporting South Africa’s power supply with renewable energy, opening South Africa to more opportunities to share in the future of renewable energy.
A massive 540 megawatt solar and battery power project is underway in Kenhardt, Northern Cape. Photo: Scatec
