Scatec ASA has been chosen as the preferred bidder for an 846 MW solar project in South Africa, as part of the Department of Electricity and Energy’s (DEE) latest renewable energy tender, known as Bid Window 7 of the REIPPPP.
The award follows a reallocation of capacity from onshore wind to solar PV.
The Kroonstad PV cluster, located in the Free State province, will consist of three solar power plants: Oslaagte Solar 2 and Oslaagte Solar 3 (each 293 MW), and Leeuwspruit Solar (260 MW).
The project is valued at approximately ZAR 13bn, with up to 90% financed through non-recourse project debt and the remainder through equity from project owners.
“It excites me to announce another important milestone for Scatec in South Africa and for the country’s renewable energy transition,” said Scatec CEO Terje Pilskog.
“Being selected once again under the REIPPPP reaffirms our role as a trusted partner and a leading developer in the region.”
Scatec will own 50.9% of the project, with Stanlib’s Greenstreet platform and Redstreet holding 46.5%, and a Community Trust owning 2.6%. The company will also deliver EPC, O&M, and asset management services.
“I am proud to announce Scatec’s largest megawatt award to date in South Africa, which is a testament of our organisation’s strong track record, capabilities and competitive edge,” said Alberto Gambacorta, EVP and GM for Sub-Saharan Africa.
“We are now looking forward to reaching financial close and start construction of the PV cluster during 2026.”
Once operational, the cluster will supply clean, reliable power under 20-year power purchase agreements.
[Image credit: Scatec]
