(Ecofin Agency) – Standard Bank and British International Investment will provide debt investment, but Scatec will also make an equity contribution to the project, which is expected to meet South Africa’s energy demand.
South African banking group Standard Bank Group and British International Investment (BII) have agreed to provide 12.4 billion rand ($720 million) in senior loans for a major battery energy storage and solar photovoltaic (PV) energy in South Africa.
The said project, whose cost is estimated at approximately 1 billion US dollars, will beAfrica’s largest baseload renewable energy project and South Africa’s first“, underlined the BII in a press release published yesterday (July 21). It will be developed by renewable energy solutions provider Scatec ASA, which will provide the largest equity investment in the project, around 16.4 billion rand ($962 million).
“This project is a first of its kind and will be one of the largest solar and battery installations in the world. We now look forward to commencing construction on this unique and exciting project, which will be a major contribution to South Africa’s economy and green energy sector,” commented Scatec CEO Terje Pilskog (pictured).
The project will start in the Northern Cape province after financial close in the coming weeks. Once operational, it will provide 540 MW of solar energy capacity and 1.1 GWh of battery energy storage capacity. It will help meet South Africa’s energy demand by adding clean energy to the country’s energy mix.
Scatec will own 51% of the project while the BII will own the remaining 49%, through its South African partner H1 Holdings.
Note that this is not the first time that BII and Scatec have jointly developed renewable energy projects in Africa. They have developed many others in the past.