Project Overview

The Scatec Kenhardt solar farm is one of the largest solar PV (photovoltaics) plants in South Africa. It is considered one of the world’s largest hybrid solar and battery storage facilities. Commissioned in 2023, this Kenhardt solar farm is installed with a 540 W solar capacity and 225MW/1,140MWh battery storage capacity. 

The Kenhardt project delivers about 150 MW of power year-round from 5:00 am to 9:30 pm to the national grid (South African power supply) under a PPA (Power Purchase Agreement) of 20 years with Eskom. As a hybrid solar and stored energy plant, it integrates solar and battery technologies, making it a reliable source of power in low or no sunlight climatic conditions. 

Built by Scatec and H1 Holdings under a total investment of approximately USD 1 Billion, it is a reliable source for meeting region-wide energy needs during high consumption periods. Scatec - South Africa will benefit greatly from the returns generated from the Kenhardt project.

Project Background

The Scatec Kenhardt project ensures an annual production of 900 GWh under the technology RMIPPP (Risk Mitigation Independent Power Producer Procurement Programme). This program was initiated to bridge the power supply-demand shortages and ensure consistent supply across South Africa.

The Kenhardt Solar Farm project marks the largest commitment in Scatec’s history. It was designed with dispatchable power production integrated with a battery energy storage system (BESS), enhancing overall reliability.

This solar PV project with an innovative module encouraged the FID by securing debt through a group of lenders. This consortium includes Standard Bank Group and British International Investment (BII).

Project Location

Scatec Solar Farm is in Kenhardt, in the Northern Cape Province of South Africa. The three Kenhardt plants generate and produce electricity for the national grid.

Source: Google Maps

Project Cost

The project value of the Kenhardt Scatec project under the EPC contract is approximately ZAR 13.7 Billion (USD 800 Million). The total capex is (approximately) ZAR 16.4 Billion (USD 962 Million), financed through project owners' equity. ZAR 12.4 Billion (USD 727 Million) is a non-recourse project debt. 

Project Timeline

Technical Specifications

The Kenhardt solar power complex station is designed with three plants, totaling a 540 MW solar electricity capacity. Additionally, it is designed as a hybrid solar project with a BESS capacity of 225MW/1,140MWh. This project will deliver 150MW daily to the national grid to reduce the regular blackouts in the Kenhardt region. It uses solar PV technology, which is concentrated solar power, to generate electricity. 

In July 2022, the solar energy plant installed about 1 Million PV Modules. The battery facility includes 456 container-sized units weighing 30 tonnes. This project includes over 9,000 kilometers of cabling covering Norway and South Africa. 

Contractors

Scatec was awarded three projects by Kenhardt by the Department of Mineral Resources and Energy in South Africa under the RMIPPP. These three projects include a 50 MW installed solar capacity for each plant, totaling 150 MW (3x50MW) of contracted capacity. 

Scatec built this plant under the Engineering, Procurement and Construction (EPC) contract. Additionally, it will provide operation & maintenance and Asset Management services to this power plant. The power generated will be sold under 20 20-year PPA with Eskom with an additional paid capacity charge. 

Investors 

The debt provided in this project is through a group of lenders. It includes the Standard Bank Group as the lead arranger and British International Investment. The entire funding of the project was in local currency ZAR. The loan is at an 11.88% interest rate with a maturity year of 2041. 

Ownership

Operating Expenses & Revenue Generated

Scatec Kenhardt Solar Project started commercial operation in the fourth quarter of 2022. Three plants in Kehnhardt provided solid performance with no lost time incidents. 

Benefits of this Project

The Scatec Kenhardt solar plant provides several benefits to the people in the Kenhardt region. Below listed are a few benefits: 

Consistent Power Supply: The regular power supply of 150 MW to the national grid ensures reduced blackouts in the Kenhardt region.

Environmental Impact: Reduced CO2 emissions and reliance on fossil fuels shifting to clean energy through renewable solar power. 

Employment Opportunities: During construction, about 2600 workers, mainly women workers, boosted local employment. 

Conclusion

The Scatec Kenhardt Solar Plant is a significant milestone in renewable energy for South Africa, providing a reliable power source for the residents of the Kenhardt region. It is designed and built as an advanced hybrid solar and battery storage technology. The solar capacity includes 540 MW, and battery storage is 225MW/1,140MWh.

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