Scatec's Major 846 MW Solar PV Tender Win in South Africa

Author: Evelyn Baker Updated: 07-22-2025 04:15 PM

Scatec Secures 846 MW Solar Project in South Africa

Scatec ASA has marked a tremendous achievement by being awarded preferred bidder status for a substantial 846 MW solar project, known as the Kroonstad PV cluster. This award comes from the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) led by South Africa's Department of Electricity and Energy. The decision follows a strategic shift in project allocation from onshore wind to solar PV under the seventh bid window.

Details of the Solar Power Cluster

The Kroonstad cluster, located in the Free State province, is composed of three individual solar power plants: Oslaagte Solar 2 and 3, both with a capacity of 293 MW, and Leeuwspruit Solar at 260 MW. The total estimated investment required for these projects is ZAR 13 billion, approximately USD 735 million. Remarkably, up to 90% of this funding will come from non-recourse project debt, with the balance covered by equity from the stakeholders.

CEO's Commitment to Future Energy Solutions

Terje Pilskog, the CEO of Scatec, expressed his enthusiasm regarding this milestone, highlighting the project's importance to South Africa's renewable energy landscape. He stated, "This achievement signifies a crucial expansion of Scatec's renewable energy footprint in Sub-Saharan Africa. Our selection in the REIPPPP underscores our reputation as a reliable partner in advancing clean energy solutions.”

Growth in Renewable Capacity for South Africa

Alberto Gambacorta, Executive Vice President and General Manager for Sub-Saharan Africa, stated that this is the largest megawatt award the company has received in South Africa to date. He emphasized Scatec's commitment to growing its renewable energy capacity in line with the nation's ambitious energy transition goals. "We eagerly await reaching financial closure and are excited to commence construction of the PV cluster in 2026,” he noted.

Project Ownership and Management Details

In this ambitious project, Scatec will hold a 50.90% equity stake, with Stanlib's infrastructure fund and Redstreet also holding significant portions. A Community Trust will retain a 2.6% ownership stake in the project to ensure local benefits. Scatec will be responsible for providing a comprehensive range of services including engineering, procurement, construction (EPC), operations & maintenance (O&M), and asset management (AM) to ensure the project's success.

Scatec's Vision for Renewable Energy

Scatec's dedication to renewable energy is evident through its dynamic growth strategies. Currently, the company is involved with 6.2 GW of renewable energy projects in operation and under development across five continents. The focus remains on delivering reliable and affordable energy solutions, driven by a shared vision of improving global energy access.

Frequently Asked Questions

What is the significance of the 846 MW solar project for Scatec?

This project marks a major expansion of Scatec's renewable energy footprint in South Africa, showcasing their capability to meet growing energy demands.

Where is the Kroonstad solar cluster located?

The Kroonstad cluster is situated in the Free State province of South Africa and comprises three solar power plants.

Who are the partners involved in the project?

Scatec will partner with Stanlib's infrastructure fund and Redstreet, along with a Community Trust that ensures local community involvement.

When is the construction of the solar cluster expected to start?

Construction is anticipated to begin in 2026 following financial closure.

What is Scatec's overall mission?

Scatec aims to accelerate access to reliable and clean energy in emerging markets while expanding its renewable energy projects globally.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

My goal with writing is to simplify difficult financial ideas into understandable, doable guidance. My goal in writing many books and articles is to make personal finance understandable to everyone, irrespective of their experience or background. I want to give readers the information they need to take charge of their financial futures, from investing and retirement planning to budgeting and saving.

Along with my writing, I lead webinars and workshops where I provide doable advice and methods for achieving financial success. To reach a larger audience, I also frequently contribute to financial blogs and publications. My method is always to offer doable, real-world guidance that can actually improve people's lives.

Aside from my job, I like to cook, travel, and experience other cultures. I work hard to apply my belief in the value of a balanced life to my financial counsel. My goal in working is to encourage and enable people to succeed financially so they may lead the best lives possible.

Contact Evelyn Baker privately here. Or send an email with ATTN: Evelyn Baker as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.