Norwegian independent renewable energy producer Scatec has been named preferred bidder by the South African Department of Mineral Resources and Energy in the seventh round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). This ambitious programme aims to boost the country's energy capacity through renewable projects while attracting international investment.
The project awarded to Scatec will have an installed capacity of 288 MW and will be backed by a 20-year power purchase agreement (PPA), guaranteeing a sustainable supply of green energy to South Africa.
Scatec, which will hold a 50.9% stake in the project, will also provide a number of essential services:
– Ingénierie, approvisionnement et construction (EPC)
– Exploitation et maintenance (O&M)
– Gestion des actifs (AM)
In a press release published on 23 December 2024, the company expressed its enthusiasm about this opportunity, underlining the importance of its contribution to the sustainable energy development of South Africa.
The Ministry of Mineral Resources and Energy has indicated that the closing of the commercial window of this seventh REIPPPP cycle is scheduled for the second half of 2025. This deadline marks a crucial stage in bringing the project to fruition and integrating this new energy capacity into the national grid.
The project is part of South Africa's efforts to address its chronic energy challenges by diversifying its energy mix and increasing the share of renewable energy. REIPPPP is seen as a key lever for attracting foreign investors while building local capacity in green energy.
With a total planned capacity of 288 MW, Scatec's project represents a significant step forward in meeting the country's growing energy needs while reducing its carbon footprint.
With a presence in several emerging markets, Scatec is a leading player in the field of renewable energies, with expertise in solar, wind and hydroelectric power. As a strategic partner for countries seeking sustainable energy solutions, the company continues to expand its global presence, including in Africa.