Major boost for renewable energy in the Free State province
Norwegian renewable energy developer Scatec ASA has been named preferred bidder for an 846 MW solar power project in South Africa, under the country’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
The announcement, made by the Department of Electricity and Energy (DEE), follows a strategic reallocation of energy capacity from onshore wind to solar photovoltaic (PV) within Bid Window 7 of the REIPPPP.
Kroonstad PV Cluster: A Mega Solar Investment
The awarded project, known as the Kroonstad PV Cluster, will be located in Free State province and comprises three large-scale solar farms:
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Oslaagte Solar 2 – 293 MW
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Oslaagte Solar 3 – 293 MW
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Leeuwspruit Solar – 260 MW
Once operational, these farms will supply clean, reliable electricity to the national grid under 20-year Power Purchase Agreements (PPAs).
The total project investment is estimated at ZAR 13 billion (USD 735 million). Up to 90% of funding will be raised through non-recourse project debt, with the remaining capital provided by equity from project owners.
Scatec Reinforces Its Role in South Africa’s Energy Transition
“This is another important milestone for Scatec and for South Africa’s journey towards a more sustainable energy future,” said Scatec CEO Terje Pilskog. “The Kroonstad PV Cluster strengthens our growing renewable portfolio in Sub-Saharan Africa and demonstrates our continued role as a reliable partner in the region.”
Pilskog also praised the South African government’s “ongoing commitment to enabling clean, secure, and affordable energy” through supportive procurement programs like the REIPPPP.
Largest Solar Award Yet for Scatec in South Africa
Alberto Gambacorta, Scatec’s EVP and General Manager for Sub-Saharan Africa, celebrated the development as the company’s largest megawatt award to date in South Africa.
“This award is a strong vote of confidence in our track record, capabilities, and competitive edge,” he said. “South Africa remains a core market for us, and we’re committed to scaling up renewables in alignment with the nation’s energy transition agenda.”
Scatec aims to reach financial close and begin construction in 2026.
