Dyason’s Klip 2 solar project one of Scatec Solar’s three solar power stations on the Upington complex, located in the Northern Cape Province of South Africa is now fully complete. This is after the Norwegian Independent Power Producer (IPP) recently completed the construction and connection of Dyason’s Klip 2, the third and the last plant in the complex.
Dyason’s Klip 2 solar project, like the two previously commissioned plants, has a capacity of 86 MWp, representing an annual production of 217 GWh. With this capacity, the plant is capable of supplying electricity to approximately 40,000 South African homes.
In total, Scatec Solar’s three solar power stations have a capacity to generate about 258 MWp, enough to connect 120,000 South African homes. These installations according to Scatec Solar, prevent the emission of 600,000 tons of carbon dioxide per year.
An overview of the entire project
In April 2015, Scatec Solar was awarded preferred bidder status for the three projects in the fourth bidding round under the Renewable Energy Independent Power Producer Programme (REIPP) which was initiated by the South African government to attract IPPs.
The Norwegian company partnered with several other companies to develop this solar project. The partners include H1 Holdings, a South African investment company and KLP Norfund Investments, a Norwegian government-private equity firm each with 35 percent and 18 percent shareholding respectively. Scatec Solar holds the largest shares (42%) while the surrounding Community of Upington holds the list (5%).
The entire project, according to Scatec Solar cost a total investment of over US$ 350M. A consortium of commercial banks and DFIs with Standard Bank in the lead provided non-recourse project finance of approximately US$274M, accounting for 77% of the total project cost.
Scatec Solar and its partners will sell electricity to the state-owned Eskom company under a Power Purchase Agreement (PPA).
