South Africa has awarded a solar energy project with a capacity of 288 megawatts (MW) to the Norwegian company Scatec under the seventh round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). This program, led by the Department of Mineral Resources and Energy, aims to drive private investment in energy infrastructure.
The contractual framework of the project
The project will be implemented over several years, with commercial close expected in the second half of 2025. Once operational, it will supply electricity under a 20-year Power Purchase Agreement (PPA). This type of contract ensures stable revenues for investors while addressing the country’s growing energy demand.
A lever for energy diversification
This initiative is part of South Africa’s efforts to diversify its energy mix. Currently dominated by coal, the South African energy sector faces challenges in transitioning to renewable sources to reduce its carbon footprint. The REIPPPP program plays a key role in this transformation.
Political and economic stakes
For the South African government, this project represents a strategic advance not only environmentally but also economically. The involvement of foreign companies like Scatec demonstrates the country’s commitment to attracting international capital while strengthening local capabilities in clean energy production.
A pivotal program for energy in Africa
Launched more than a decade ago, the REIPPPP has positioned South Africa as a leader in renewable energy adoption on the continent. With this solar energy project, the country strengthens its strategy for energy independence and tackles recurring power outages.
