Scatec, a Norwegian renewable energy firm with operations in South Africa, has secured $102 million worth of financial risk reduction from state-backed financial institution, Export Finance Norway (Eksfin), for the construction of a combined solar-battery project in the Northern Cape province of South Africa.
Scatec will use the financial package to develop 540 MW of solar power capacity and 225 MW of battery storage capacity.
By integrating solar and storage, Scatec aims to ensure energy generated during peak periods can be utilized to meet demand during periods when generation is low.
The Northern Cape projects will represent Scatec’s largest-ever investment as well as one of the largest solar-battery hybrid projects worldwide, according to a press statement. The financial risk package from Eksfin will enable Scatec to secure loans from Standard Bank and British International Investment to fund the development of the solar power and energy storage projects.
Terje Pilskog, CEO at Scatec, stated that, “The world is at a crossroads amid the green shift and the energy crisis. Norway as an energy nation is well placed to play a central role in the development of renewable energy and reaching global climate goals. Eksfin and other Norwegian financial actors are important contributors in helping us get there.”
The funding will also enable Scatec to support its growth prospects across South Africa’s renewable energy sector as the country seeks to accelerate the penetration of renewables to alleviate the looming energy crisis.
“We are proud to collaborate with Scatec, one of the many renewable-energy companies Eksfin has financed. Supporting solar energy projects is critical at a time when the world desperately needs more clean energy,” stated Tone Lunde Bakker, Managing Director, Eksfin.
Scatec has previously delivered six large power plants in South Africa with total capacity of 448 MW.
