Scatec in South Africa completes sale of Upington solar complex for $49m

Sourced from; Afrik 21

 Scatec is no longer the majority shareholder in the Upington photovoltaic solar power plant in South Africa. Its 42% stake has been taken over by a subsidiary of Stanlib Infrastructure Fund II, managed by Stanlib Asset Management Proprietary, an asset manager based in Johannesburg, South Africa. The proceeds of the sale amount to 973 million South African rand, or just over $49 million.

“The net book gain is estimated at NOK 791 million (over $71 million) on a consolidated basis and NOK 348 million (over $31 million) on a proportional basis. The difference is mainly due to the project-related D&C margin, which has been eliminated in the consolidated statement of financial positions”, Scatec points out.

However, the Norwegian independent power producer (IPP) will continue to provide operation and maintenance (O&M) and asset management services for the Upington plants. The other shareholder in the Upington solar complex, the Norwegian Investment Fund for Developing Countries (NORFUND), which holds 18% of the shares, also plans to sell its stake to Stanlib. With these transactions, Stanlib will own 60% of the complex, with the remaining shares held by the South African investment company H1 Holdings (35%) and the community trust (5%).

Located in the Northern Cape province, the Upington solar complex comprises three power plants, each with a capacity of 86 MWp, which have been in commercial operation since 2020. These installations have a combined capacity of 258 MW, giving an annual production estimated by Scatec at 650 GWh, enough to supply 120,000 South African homes while helping to reduce emissions by 600,000 tonnes of COequivalent over the same period.

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