Scatec begins operations at Grootfontein solar plant in South Africa
Norwegian producer Scatec launches commercial operation of its 273 MW solar plant in Western Cape under a 20-year power purchase agreement.
| Sectors | Solar Energy, Photovoltaic |
|---|---|
| Themes | Investments & Transactions, Contracts |
Energy group Scatec ASA has commenced commercial operations at the Grootfontein solar plant, with a capacity of 273 megawatts (MW), located in South Africa’s Western Cape province. The project is backed by a 20-year Power Purchase Agreement (PPA), ensuring stable revenue for the Norwegian group.
First solar plant connected in Western Cape
The Grootfontein facility represents Scatec’s first photovoltaic installation in the region. It is also the first solar project to enter commercial operation under the fifth round of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). According to provided data, the site is expected to generate up to 700 gigawatt hours (GWh) annually.
Scatec holds 51% of the project’s equity, alongside H1 Holdings, its local Black Economic Empowerment partner, which owns 46.5%, and the Grootfontein Local Community Trust, which holds 2.5%. The Norwegian group will oversee operations, maintenance and asset management for the plant.
Strengthening Scatec’s regional footprint
This strategic development confirms Scatec’s continued expansion in the South African market, where it already operates a significant portfolio. The company identifies Sub-Saharan Africa as a key area for growth, particularly in solar generation. Grootfontein’s commissioning reinforces this direction.
The launch comes amid South Africa’s ongoing energy challenges, marked by frequent power outages due to insufficient generation capacity. The project aims to support electricity supply stability while fulfilling long-term delivery obligations under the REIPPPP framework.
