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South Africa: Scatec Opens 273 MW Grootfontein Solar Complex Under 20-Year Eskom Contract

South Africa: Scatec Opens 273 MW Grootfontein Solar Complex Under 20-Year Eskom Contract
Monday, 08 December 2025 12:34
  • Scatec launches 273 MW Grootfontein solar complex in South Africa
  • Project to supply Eskom under 20-year deal, cost $270 million
  • Part of REIPPPP push to expand renewables, cut coal reliance

Norwegian group Scatec announced the commercial launch of the Grootfontein solar complex in South Africa on Saturday. The 273-megawatt project, awarded in 2021 under the fifth round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), will supply power to national utility Eskom under a 20-year power purchase agreement.

Scatec said the Grootfontein project has a total cost of $270 million, financed through equity and $241 million in non-recourse debt arranged by Standard Bank of South Africa. The three plants making up the complex are expected to generate about 700 gigawatt-hours a year and cut roughly 630,000 tonnes of CO₂ emissions.

Grootfontein strengthens Scatec’s position as a trusted renewable energy partner in South Africa and underscores our commitment to scaling impact through sustainable, high-quality projects,” said Alberto Gambacorta, the company’s managing director for Sub-Saharan Africa.

Scatec, which has operated in South Africa since 2010, said the country remains central to its growth strategy. The group already runs 730 MW of capacity there, is developing new projects and manages its global supervision centre from South Africa. It also works on the Kenhardt complex, which includes 540 MW of solar and 225 MW of storage and is considered the company’s largest investment at about $1 billion.

Scatec’s expansion in the country is supported by the REIPPPP, the government’s main programme for accelerating renewable-energy development. The scheme enables private producers to access the electricity market and supports the construction of new generation capacity, particularly solar and wind.

The launch of Grootfontein shows the programme’s effectiveness, as it continues to attract international developers and expand renewable capacity in a country still heavily dependent on coal.

Abdoullah Diop

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