Scatec Solar signs Power Purchase Agreements for 258 MW in South Africa
April 05 2018 - 2:00AM
Oslo, April 5, 2018: Scatec Solar
ASA (SSO) and partners last night signed all project documents and
are shortly expected to achieve financial close for three solar PV
plants in South Africa totaling 258 MW.
"South Africa continues to be an important market
for Scatec Solar and we are very pleased to see that the renewables
programme now is finally moving forward. We believe solar energy
will continue to play an important role in the energy mix and
provide strong support for economic growth in the country in the
years to come", says Raymond Carlsen, CEO of Scatec
Solar.
In April 2015, Scatec Solar was awarded preferred bidder status for
the three projects in Upington in the fourth bidding round under
the REIPPP (Renewable Energy Independent Power Producer
Procurement) Programme in South Africa. Scatec Solar will build,
own and operate the solar power plants with a 42% shareholding. KLP
Norfund Investments will hold 18%, the surrounding Community of
Upington 5% and a South African Black investor will hold the
remaining 35% of the equity.
The three projects involve a total investment of ZAR 4.76 billion.
A consortium of commercial banks and DFIs with Standard Bank in the
lead are providing non-recourse project finance of ZAR 3.68
billion, accounting for 77% of the total project cost.
Construction start is expected in the third
quarter of 2018 with grid connection towards the end of 2019. The
plants are, on an annual basis, expected to produce 650 GWh of
electricity and avoid about 550,000 tons of CO2 emissions. Revenues
in the first year of operations are expected to reach ZAR 720
million. All contract terms are based on the original award in
April 2015.
Scatec Solar will be the Engineering, Procurement
and Construction (EPC) provider for the projects and provide
Operation & Maintenance as well as Asset Management services to
the power plants.
The 258 MW adds to Scatec Solar's large portfolio
of projects that have reached financial close over the last six
months now totaling 1,092 MW in South Africa, Egypt, Brazil,
Malaysia, Honduras and Mozambique.
When the new power plants are in operation Scatec
Solar will hold a diversified asset portfolio with a capacity of
1.4 GW. This portfolio is expected to generate 2,900 GWh of
electricity per year with annual revenues of about NOK 2.7 billion
- all supported by long term Power Purchase Agreements of 20-25
years. Scatec Solar's economic interest in the asset portfolio is
50%.
"With financial close reached for 1.1 GW of solar
projects we have entered into construction contracts with a value
of about NOK 8.5 billion that will be realized over the next 1-2
years. We are well prepared for this construction activity and we
are now taking a big step forward as a leading emerging market
focused solar power producer. On the back of our success, we
continue to grow our project pipeline and we are pursuing a large
number of attractive opportunities both in existing and new
markets", says CEO Raymond Carlsen.
For further information,
please contact:
Mr. Raymond Carlsen,
CEO,
tel: +47 454 11 280
raymond.carlsen@scatecsolar.com
Mr. Mikkel Tørud,
CFO,
tel: +47 976 99 144
mikkel.torud@scatecsolar.com
About Scatec
Solar
Scatec Solar is an
integrated independent solar power producer, delivering affordable,
rapidly deployable and sustainable source of clean energy
worldwide. A long term player, Scatec Solar develops, builds, owns,
operates and maintains solar power plants, and already has an
installation track record of 1,000 MW.
Currently, the company is
producing electricity from 322 MW of solar power plants in the
Czech Republic, South Africa, Rwanda, Honduras and Jordan and
another 434 MW are under construction.
With an established global
presence, the company is growing briskly with a project backlog and
pipeline of more than 1.5 GW under development in the Americas,
Africa, Asia and the Middle East. Scatec Solar is headquartered in
Oslo, Norway.
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Scatec Solar ASA via Globenewswire
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