Scatec Wins 846 MW Under South Africa REIPPPP Round 7

Scatec ASA has been awarded preferred bidder status for an 846 MW solar power project under the seventh round of South Africa’s Renewable Energy IPP Procurement Programme (REIPPPP). The award follows the Department of Electricity and Energy’s reallocation of capacity from onshore wind to solar PV, reflecting a shift in procurement priorities.

Located in the Free State province, the winning project — dubbed the Kroonstad PV Cluster —  will consist of three utility-scale solar farms: Oslaagte Solar 2 (293 MW), Oslaagte Solar 3 (293 MW), and Leeuwspruit Solar (260 MW). These projects will supply clean and reliable electricity under 20-year power purchase agreements (PPAs) once operational.

The estimated total investment for the cluster stands at ZAR 13 billion (USD 735 million). Financing will be structured with up to 90 percent non-recourse project debt, while the remaining portion will be covered by equity contributions from project partners.

Equity Structure and Local Participation

Scatec will hold roughly 51 percent equity stake in the Kroonstad PV Cluster. The remaining ownership will be shared between Stanlib’s infrastructure platform, Greenstreet, and Redstreet, which together hold 46.50 percent, and a local Community Trust, which will own 2.6 percent.

Scatec will also deliver the engineering, procurement, and construction (EPC), as well as operations & maintenance (O&M) and asset management (AM) services. Financial close for the project is expected in 2026, with construction set to commence shortly thereafter.

“This is a landmark achievement for Scatec in South Africa and further strengthens our position as a trusted partner in the region,” said Terje Pilskog, CEO of Scatec. “The Kroonstad PV Cluster represents a significant addition to our renewable portfolio in Sub-Saharan Africa.”

Financial Close for Hybrid Solar-Storage Project in Egypt

In a parallel development, Scatec earlier announced the financial close for its Obelisk hybrid solar and battery storage project in Nagaa Hammadi, located in Egypt’s Qena governorate.

The Obelisk project, estimated at USD 590 million, has secured USD 479.1 million in non-recourse financing from a consortium of major international development finance institutions. 

Scatec has positioned the Obelisk project as a model for integrating solar power with battery storage to support grid reliability and decarbonisation in emerging markets. The hybrid design is expected to help Egypt manage peak load demands more efficiently while accelerating its clean energy transition.