Scatec Solar has started early commercial operation for another 86 MW, the second of three, of the 258 MW solar power complex in Upington, South Africa.
Scatec Solar and partners have grid-connected and started early commercial operation for another 86 MW unit, the second of three, of the 258 MW solar power complex in Upington, South Africa. The 86 MW facility, known as Dyason’s Klip 1, is expected to produce 217 GWh of clean electricity for around 40,000 households annually.
“This is another great achievement by our team in South Africa, bringing this important project online earlier than planned and supporting South African power supply in this time of much-needed electricity. We continue to develop renewable energy projects to support the country’s energy demand and we are ready to deliver new capacity, both within the utility-scale segment as well as towards private customers in the commercial and industrial spheres, said Raymond Carlsen, CEO of Scatec Solar.
Dyason’s Klip 1 will be earning 60 percent of the tariff until the scheduled commercial operation date which is expected in mid-March. When completed, the Upington solar power complex will provide clean energy for around 120,000 households and lead to the abatement of more than 600,000 tonnes of CO² emissions annually. The last of the three solar plants under construction is expected to reach commercial operation within the next few months.
The three projects in Upington was awarded in April 2015 in the fourth bidding round under the Renewable Energy Independent Power Producer Programme (REIPP) in South Africa. Scatec Solar owns 42 percent, Norfund holds 18 percent, the surrounding Community of Upington 5 percent and H1 Holdings, a South African Black investor holds the remaining 35 percent of the equity.
In January, the firm reported strong growth in the fourth quarter of 2019 with proportionate revenues of NOK 1,642 million (1,666) (USD 181 million), and EBITDA of NOK 434 million (329). Power production reached 298 GWh on a proportionate basis, up almost threefold from the same period last year, adding to existing predictable and long-term cash flows.
In December 2019, we had reported that Equinor had acquired 6,500,000 shares in Scatec Solar, corresponding to 5.2 percent of the shares and votes, at a total purchase price of NOK 754 million (USD 84 million).