The Department of Electricity and Energy (DEE) in South Africa has chosen the Scatec solar project South Africa as the preferred bidder for a total of 846 MW of solar power (the Kroonstad PV cluster) in the seventh phase of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The award comes after the seventh bid window moved MW from onshore wind to solar PV. The projects will produce clean and stable electricity for 20 years once they are up and running.
The Scatec solar project South Africa cluster will be in the Free State province and will include three solar power plants: Oslaagte Solar 2 (293 MW), Oslaagte Solar 3 (293 MW), and Leeuwspruit Solar (260 MW). The solar cluster project is expected to cost ZAR 13 billion (USD 735 million) in total. Up to 90% of the money for the projects will come from non-recourse project loans, while the rest will come from the owners’ equity.
“It excites me to announce another important milestone for Scatec in South Africa and for the country’s renewable energy transition. The Kroonstad PV Cluster represents a significant addition to Scatec’s growing renewable energy footprint in Sub-Saharan Africa. Being selected once again under the REIPPPP reaffirms our role as a trusted partner and a leading developer in the region. We commend the government’s continued commitment to enabling clean, secure, and affordable energy,” says Scatec CEO Terje Pilskog.
“I am proud to announce Scatec’s largest megawatt award to date in South Africa, which is a testament of our organisation’s strong track record, capabilities and competitive edge”. 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.
We are now looking forward to reaching financial close and start construction of the PV cluster during 2026,” says Alberto Gambacorta, EVP and GM for Sub-Saharan Africa.
Scatec will possess 50.90% of the Scatec solar project South Africa equity. Stanlib’s infrastructure fund (via its renewable energy platform, Greenstreet) will own 46.50%, and a Community Trust will own 2.6%. Scatec will help with engineering, procurement, and construction (EPC), operations and maintenance (O&M), and asset management (AM) for the project. The financial closure is projected to happen in 2026.