According to bank provided information, the Project consists of the development, financing, construction, operation and maintenance of a greenfield fully dispatchable facility with a 50MWp contracted capacity consisting of a 180 MW solar photovoltaic (“PV”) combined with a 75 MW/380 MWh battery energy storage (“BESS”) located in Kenhardt in South Africa (Project “RMI4P Scatec 2” or “Kenhardt 2”). The electricity generated from the Project will be sold to South Africa’s state-owned electricity utility, Eskom through a 20-year Power Purchase Agreement.
Project Kenhardt 2 is adjacent to similarly sized projects Kenhardt 1 and 3; these Projects have been identified as preferred bids under the Risk Mitigation IPP Program (“RMI4P”) by the South Africa IPP Office on June 1, 2021.
The Project cost is estimated at US$ million, which the Company expects to finance with an 80% debt-to-equity ratio. The proposed IFC investment is up to US$68.0 million including (i) an A-Loan of up to US$50 million; and (ii) two IFC Blended Finance Senior Loans of up to US$18.0 million from the Canada Climate Change Program and the Clean Technology Fund (“CTF”) with a loan equivalent amount of hedging swaps of up to US$1.0 million. Standard Bank of South Africa (“SBSA”) will provide the balance of debt through a Parallel Senior Loan of up to US$165 million.
The Project Company is Scatec Kenhardt 2, a special purpose vehicle to be incorporated in South Africa. The Company is 51% owned by Scatec ASA and 49% by Black Economic Empowerment (“BEE”) partner H1 Holdings.
Scatec ASA is a leading emerging markets renewable energy company. The Norwegian listed company is an experienced PV system integrator with experience in developing, financing, designing, constructing, and operating utility scale PV plants globally. Scatec ASA has recently acquired SN Power, a leading hydropower developer and IPP. The company has 3.3 GW in operation or construction on four continents.
H1 Holdings is a black-owned and managed infrastructure and development company based in South Africa with a strong focus on Environmental, Social and Governance (“ESG”). The company was founded in 2000. Scatec ASA and H1 Holdings’ collaboration on the Kenhardt Projects is a natural follow on from a successful cooperation on three projects of Round 4 of the Renewable Energy IPP Procurement Program.
|Private Actor 1||Private Actor 1 Role||Private Actor 1 Sector||Relation||Private Actor 2||Private Actor 2 Role||Private Actor 2 Sector|
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