Kroonstad, a minor South African town in the Free State province of the same name is embarking on a future in clean energy. Scatec ASA has been designated as the top bidder for the Kroonstad photovoltaic (PV) cluster under phase seven of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
What is the Kroonstad PV Cluster?
The Kroonstad PV cluster has an overall capacity of 846 MW solar power and consists of three new solar plants as follows:
Oslaagte Solar 2 (293MW)
Oslaagte Solar 3 (293MW)
Leeuwspruit Solar (260MW)
The project is expected to cost R13 billion and will be financed mostly up to 90% with non-recourse project debt and the rest with equity from the owners.
Who Is Behind the Project?
Scatec will maintain ownership of 50.90%, Stanlib’s Greenstreet and Redstreet will own 46.50%, while a Community Trust will hold the remaining 2.60%. Scatec will also be responsible for engineering, procurement, construction, operations and asset management.
When Will It Begin?
The project is awaiting financial close which is expected to happen as early as 2026, with construction expected soon thereafter. When opened, the plants will provide clean and dependable energy under 20 year power purchase agreements (PPAs).
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What Does This Mean for South Africa?
This award is Scatec’s biggest megawatt award in South Africa, and strengthens the company’s position in the renewable energy transition in the country. It demonstrates both Scatec’s competitive differentiator and the Government of South Africa’s commitment to clean energy, said Scatec CEO, Terje Pilskog.
Who Else Won in Bid Window 7?
Red Rocket SA also received preferred bidder status as part of a partnership with MBY Energy and Jade-Sky Energy to develop three projects totaling 590 MW in the Free State, Dwaalboom 3, Virginia 4 and Florida Solar Parks.
