Norway-based independent power producer (IPP) Scatec has started operations on three solar-plus-storage projects in South Africa, totalling 1,140MWh of BESS capacity.
Located in the Northern Cape province, the Kenhardt project consists of three solar plants and a battery energy storage system (BESS) with a capacity of 225MW/1,140MWh.
Under a 20-year power purchase agreement (PPA) with state-operated utility Eskom signed last year, the project will deliver 150MW of power to the national grid between 5am and 9:30pm. The project was awarded under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP).
The project had an investment of nearly US$1 billion and was Scatec’s largest project commitment, with the debt provided by a group of lenders which includes the Standard Bank Group, acting as lead arranger, and British International Investment (BII). The Norwegian state also backed it with a US$102 million financial risk reduction package.
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The combination of solar PV with battery storage will allow for dispatchable power to be supplied during peak demand from the battery and improve grid stability, an issue that has been persistent in South Africa for years.
