Latest news with #Scatec
IOL News
5 days ago
- Business
- IOL News
Scatec clinches preferred bidder status for R13bn solar cluster in Free State
The project, known as the Kroonstad PV cluster, is expected to operate under 20-year Power Purchase Agreements (PPAs), ensuring a steady supply of sustainable energy once completed. Image: Supplied Norway-based renewable energy group, Scatec ASA, has been awarded preferred bidder status for a R13 billion solar cluster project in in the Free State province, which will add a total of 846MW to the electricity grid. In a statement on Wednesday, Scatec confirmed it had been awarded preferred bidder status in the seventh round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The project, known as the Kroonstad PV cluster, is expected to operate under 20-year Power Purchase Agreements (PPAs), ensuring a steady supply of sustainable energy once completed. This latest development follows the Department of Electricity and Energy's strategic re-allocation of energy capacity from onshore wind to solar photovoltaic (PV) solutions. The cluster will comprise three solar power plants, Oslaagte Solar 2 (293MW), Oslaagte Solar 3 (293MW), and Leeuwspruit Solar (260MW). The estimated total project cost for the solar cluster project is R13bn ($735 million). The projects will be financed with up to 90% non-recourse project debt and the remaining by equity from the owners. Scatec CEO, Terje Pilskog, said South Africa was one of the group's core markets with the latest award the largest megawatt award to date in the country. 'It excites me to announce another important milestone for Scatec in South Africa and for the country's renewable energy transition. The Kroonstad PV Cluster represents a significant addition to Scatec's growing renewable energy footprint in Sub-Saharan Africa," Pilskog said. "Being selected once again under the REIPPPP reaffirms our role as a trusted partner and a leading developer in the region. We commend the government's continued commitment to enabling clean, secure, and affordable energy." Scatec will own 50.90% of the equity in the project with Stanlib's infrastructure fund (through its renewable energy platform, Greenstreet), along with Redstreet owning 46.50% and a Community Trust holding 2.6%. Scatec will provide engineering, procurement, and construction (EPC), operations and maintenance, and asset management services to the project. Financial close is expected in 2026. "We are now looking forward to reaching financial close and start construction of the PV cluster during 2026,' said Alberto Gambacorta, Scatec's executive vice-president and general manager for Sub-Saharan Africa. The group in December announced it had officially started producing and supplying electricity to the national grid from the three Kenhardt plants in the Northern Cape. The Kenhardt project, one of the world's first and largest hybrid solar and battery storage facilities, has an installed solar capacity of 540MW and a battery storage capacity of 225MW/1 140MWh. Scatec said the project delivers 150MW of dispatchable power from 5am to 9.30pm year-round to the national grid under a 20-year Power Purchase Agreement with Eskom. The group is also in an advanced stage of the three Grootfontein solar projects won as part of the Department of Mineral Resources' fifth bidding round of its REIPPPP in 2021. The solar power plants will be the first Scatec assets located in the Western Cape province of the country and have a total capacity of 273MW solar power. Once operational the projects will deliver much needed renewable energy under a 20-year Power Purchase Agreement. The three solar plants will lead to a combined abatement of 630 000 tons of CO2 emissions annually. BUSINESS REPORT
CNN
17-07-2025
- Business
- CNN
Solar and batteries could help Egypt beat its blackouts
Egypt's first large-scale hybrid solar and battery plant has begun construction as the country looks to its abundant sunshine to help fix its energy crisis. Obelisk, located in Nagaa Hammadi, will combine 1.1 gigawatts of solar production with 200 megawatt hours of battery storage. The $590 million project is being built by Scatec, a Norwegian renewable energy company mostly working in emerging markets. Scatec already has four other renewable projects in Egypt, and the north African country is aiming to increase its share of renewable production from 13% in 2023, to 42% by 2030. Prev Next Around three quarters of Egypt's electricity comes from gas. But in recent years, as its domestic gas production fell, it became reliant on imports and rising gas prices plunged Egypt into a series of blackouts. Renewable projects are becoming increasingly attractive to emerging economies, which tend to be hit the hardest by rising fuel prices, Terje Pilskog, CEO of Scatec told CNN. 'With renewables, you are not dependent on importing fuels,' he said. 'It is also about predictability.' Sixty percent of the world's best land for solar development is in Africa, according to the industry body Global Solar Council, but in 2023, only 3% of the continent's energy came from solar. In 2024, 75% of all new solar projects were built in South Africa or Egypt, however 18 countries across Africa have the potential to install more than 100 MW solar projects in 2025, compared to two in 2024. The continent is aiming to reach 300 GW of solar capacity by 2030, which is more than the current capacity of the US. Although Egypt is looking for new domestic gas resources, it has set ambitious renewable energy targets, and hosted the COP27 climate conference in 2022. But the driving force behind these new renewable projects is economic, not environmental, said Karem Elgendy, executive director of Carboun Institute Elgendy, an energy and climate think tank for the Middle East and North Africa. With an overreliance on gas, and with declining production from its flagship Zohr gas field, Egypt is struggling to keep the lights on. Egypt issued a tender to import nearly two million tons of fuel oil in May and June to meet its electricity needs as gas imports became too expensive. The summer brings high demand, as air conditioning units are turned on to combat the intense heat – average highs can reach 42 Celsius (108 Fahrenheit) in the south. Prime Minister Mostafa Madbouly recently urged people to curb their energy usage to avoid blackouts. Whilst Egypt's summer heat increases its electricity demand, it could also offer a solution. The south of Egypt, where Scatec's new project is breaking ground is 'in the magic solar belt,' said Elgendy. According to the Global Solar Atlas, Egypt has the fourth-highest solar PV (photovoltaic) potential of any country. Historically, solar energy has been hampered by its intermittency — solar panels only work during the day and large-scale battery storage has been too expensive. However, falling battery prices, combined with the lower operational and installation costs of solar power means that projects that combine solar generation with battery storage, like Obelisk, could overcome this problem. Because of its size and prime location, Obelisk, Elgendy said, 'can demonstrate value for the rest of the region, for the rest of the world, that 'solar plus batteries' can take away this primary weakness.' The cost of battery storage projects has dropped by 89% between 2010 and 2023, driven by growing production capacity, especially in China. This drop, Elgendy said, means that by 2027 solar plus battery plants will be 'the cheapest form of (any kind of electricity) generation.' A report by the Global Solar Council said that the availability of energy storage is a 'major driver for increased solar installations globally.' However, whilst global battery storage capacity hit 363 gigawatt hours (GWh) in 2024, Africa only has 1.6 GWh. Whilst battery prices have dropped and solar is cheap to operate, these plants still need large investments to build, and the money can be hard to find, Elgendy said, adding that the 'risk premium' of investing in the developing world means that these projects are more expensive to build in Africa. The continent attracted only 3% of global energy investments in 2024. Obelisk will receive $479.1 million in funding from the European Bank for Reconstruction and Development, the African Development Bank, and British International Investment. The first 561 MW of solar power and the full battery capacity are due to be online in the first half of 2026, and reach the full 1.1 gigawatt capacity by the end of the year.
Zawya
09-07-2025
- Business
- Zawya
Egypt: Egyptalum, Scatec's arm to build $650mln solar plant for Nagaa Hammadi Complex
Arab Finance: Egypt Aluminum Company (Egyptalum) has signed an agreement with a project company affiliated with Norway's Scatec to establish a 1,000-megawatt solar power plant dedicated to supplying the Nagaa Hammadi aluminum complex with clean energy, as per a statement. The project will be carried out over 24 months with a total investment estimated at $650 million. The agreement was signed in the presence of Minister of Public Business Sector Mohamed Shimi and Norwegian Ambassador to Cairo Hilde Klemetsdal. The solar plant will be built in two consecutive phases, each with a 500-megawatt capacity, along with storage batteries totaling up to 200 megawatts. The project will be fully financed and operated by Scatec under a power purchase agreement (PPA), providing a substantial portion of Egypt Aluminum's energy needs. Shimi said the project marks a milestone for Egypt's aluminum industry and aligns with the government's broader strategy to transition to renewable energy. The minister also described the partnership as a successful model for public-private cooperation with international investors and reaffirmed the ministry's support for such ventures. For her part, Klemetsdal welcomed the agreement as a testament to the strong and growing relationship between Egypt and Norway. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
08-07-2025
- Business
- Zawya
Egyptalum signs agreement with Scatec to develop solar power plant in Nagaa Hammadi
Egypt - Minister of Public Enterprises Sector Mohamed Shimi met with Norway's Ambassador to Egypt and Libya, Hilde Klemetsdal, and her accompanying delegation at the ministry's headquarters in the New Administrative Capital, as part of efforts to strengthen bilateral cooperation in renewable energy. During the meeting, the minister and ambassador witnessed the signing of an agreement between Egyptalum — a subsidiary of the Metallurgical Industries Holding Company — and a newly established project company affiliated with Norwegian renewable energy firm Scatec. The agreement marks the official launch of a solar power project to supply clean electricity to Egyptalum's aluminum complex in Nagaa Hammadi. The solar power plant, with a total capacity of 1,000 megawatt-hours, will be implemented over 24 months in two consecutive phases, each generating 500 megawatt-hours. The project will also include the installation of battery storage systems with a total capacity of up to 200 megawatts. With an estimated total investment of approximately $650 million, the project will be fully financed, built, and operated by Scatec under a Power Purchase Agreement (PPA). The plant will supply a significant share of Egyptalum's energy needs, reducing dependence on conventional power sources. Minister Shimi welcomed Ambassador Klemetsdal at the outset of the meeting and emphasized the importance of the strategic partnership between Egypt and Norway, particularly in the fields of green transition and clean energy. He expressed his hope for further cooperation with leading Norwegian companies, given Norway's global expertise in renewable energy and environmental technologies. He described the project as a major milestone for Egypt's aluminum industry, aligning with the state's strategy to expand renewable energy use and the political leadership's directives to promote environmental sustainability and improve resource efficiency. Shimi noted that the project exemplifies successful cooperation between the public and private sectors and international investors. Key objectives include reducing operational costs at the aluminum complex, boosting production efficiency, enhancing the competitiveness of Egyptian exports, cutting traditional energy use and carbon emissions, and meeting international sustainability standards. He added that these goals will enable Egyptalum to strengthen its position in global markets, where it already exports more than 50% of its production—primarily to the European Union. The minister also highlighted that the partnership with Scatec reflects international investors' growing confidence in the Egyptian market and their willingness to contribute to major national projects that deliver both environmental and economic value. He reaffirmed the Ministry's full support for partnerships with both domestic and international private sector players. Ambassador Klemetsdal praised the strength of Egyptian-Norwegian relations and described the solar project as a model of productive cooperation between the two nations. She stressed that the initiative supports Egypt's clean energy transition and reflects the growing interest of Norwegian companies in the Egyptian market, especially in key sectors such as renewable energy.
Daily News Egypt
07-07-2025
- Business
- Daily News Egypt
Egyptalum signs agreement with Scatec to develop solar power plant in Nagaa Hammadi
Minister of Public Enterprises Sector Mohamed Shimi met with Norway's Ambassador to Egypt and Libya, Hilde Klemetsdal, and her accompanying delegation at the ministry's headquarters in the New Administrative Capital, as part of efforts to strengthen bilateral cooperation in renewable energy. During the meeting, the minister and ambassador witnessed the signing of an agreement between Egyptalum — a subsidiary of the Metallurgical Industries Holding Company — and a newly established project company affiliated with Norwegian renewable energy firm Scatec. The agreement marks the official launch of a solar power project to supply clean electricity to Egyptalum's aluminum complex in Nagaa Hammadi. The solar power plant, with a total capacity of 1,000 megawatt-hours, will be implemented over 24 months in two consecutive phases, each generating 500 megawatt-hours. The project will also include the installation of battery storage systems with a total capacity of up to 200 megawatts. With an estimated total investment of approximately $650 million, the project will be fully financed, built, and operated by Scatec under a Power Purchase Agreement (PPA). The plant will supply a significant share of Egyptalum's energy needs, reducing dependence on conventional power sources. Minister Shimi welcomed Ambassador Klemetsdal at the outset of the meeting and emphasized the importance of the strategic partnership between Egypt and Norway, particularly in the fields of green transition and clean energy. He expressed his hope for further cooperation with leading Norwegian companies, given Norway's global expertise in renewable energy and environmental technologies. He described the project as a major milestone for Egypt's aluminum industry, aligning with the state's strategy to expand renewable energy use and the political leadership's directives to promote environmental sustainability and improve resource efficiency. Shimi noted that the project exemplifies successful cooperation between the public and private sectors and international investors. Key objectives include reducing operational costs at the aluminum complex, boosting production efficiency, enhancing the competitiveness of Egyptian exports, cutting traditional energy use and carbon emissions, and meeting international sustainability standards. He added that these goals will enable Egyptalum to strengthen its position in global markets, where it already exports more than 50% of its production—primarily to the European Union. The minister also highlighted that the partnership with Scatec reflects international investors' growing confidence in the Egyptian market and their willingness to contribute to major national projects that deliver both environmental and economic value. He reaffirmed the Ministry's full support for partnerships with both domestic and international private sector players. Ambassador Klemetsdal praised the strength of Egyptian-Norwegian relations and described the solar project as a model of productive cooperation between the two nations. She stressed that the initiative supports Egypt's clean energy transition and reflects the growing interest of Norwegian companies in the Egyptian market, especially in key sectors such as renewable energy.
