R13 billion nail in the coffin for load shedding in South Africa

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23-07-2025
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Business Tech
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Norway-based renewable energy group Scatec ASA has been awarded preferred bidder status for a R13 billion solar cluster project in South Africa, which will add a total of 846MW to the grid.

The Kroonstad PV cluster project was adopted by the Department of Electricity and Energy (DEE) in the seventh round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

The award follows a re-allocation of MW under the seventh bid window from onshore wind to solar PV.

Once operational, the projects will provide clean and reliable energy under 20-year purchase power agreements (PPAs).

The project will be built in the Free State, with the cluster comprising three solar power plants:

• Oslaagte Solar 2 (293 MW)


• Oslaagte Solar 3 (293 MW)


• Leeuwspruit Solar (260 MW)

The estimated total project cost for the solar cluster project is R13 billion, the group said.

The projects will be financed with up to 90% non-recourse project debt and the remaining by equity from the owners.

Scatec CEO Terje Pilskog said the projects represent an important milestone for the group, which already has a significant and growing renewable energy footprint on the continent.

He added that the Kroonstad PV project is Scatec’s largest megawatt award to date in South Africa.

“South Africa is one of our core markets and we are dedicated to continuing to grow our renewables capacity in the country in alignment with the nation’s energy transition agenda,” he said.

The group will now move to reach financial close and start construction of the PV cluster during 2026. Financial close is expected in 2026.

Scatec will own 50.90% of the equity in the project with Stanlib’s infrastructure fund through its renewable energy platform, Greenstreet, along with Redstreet owning 46.50% and a Community Trust holding 2.6%.

The group will also provide engineering, procurement, and construction, operations and maintenance, and asset management services for the project.

Scatec is prolific in South Africa’s renewable energy bid windows, having won preferred bidder status in many rounds, as well as successfully launching multiple projects.

The group has operated smaller solar projects since 2013, and the scale has increased over the years, culminating in its latest cluster bid.

Scatec’s 540MW triple-cluster Kenhardt solar farm in the Northern Cape is currently its largest project in South Africa. It launched in April 2024.

• 2013 – Kalkbult, South Africa (in operation): 75 MW solar


• 2014 – Dreunberg, South Africa (in operation): 75 MW solar


• 2014 – Linde, South Africa (in operation): 40 MW solar


• 2023 – Kenhardt, South Africa (in operation): 540 MW solar and 225 MW battery storage


• 2024 – Grootfontein, South Africa (under construction): 273 MW solar


• 2024 – Mogobe BESS, South Africa (under construction): 103 MW battery storage


• 2025 – Kroonstad PV cluster, South Africa (preferred bid): 846MW solar