One of the largest asset managers of South Africa and part of the Standard Bank Group Limited, STANLIB Infrastructure Fund II has acquired a 42% stake in 258 MW Upington Solar Power Plant in South Africa from Norway's Scatec for ZAR 979 million ($57 million) which the latter plans to deploy for its future growth in renewables.
The 258 MW Upington Solar Power Project made up of 3 sub-projects and has been completely operational since April 2020. It generates close to 1/3rd of the proportionate power production EBITDA in the country for Scatec.
Scatec won the project in the country's 4th bidding round under South Africa's Renewable Energy Independent Power Producer Programme (REIPP). It will continue to provide operations and maintenance (O&M) and asset management services to the solar plant.
The Norwegian company has divested its entire 42% stake in the project along with project partner Norfund giving up 18% share as well to STANLIB.
Scatec expects the sale to generate a net accounting gain of approximately NOK 760 million on a consolidated basis and NOK 310 million on proportionate basis.
"South Africa remains a focus market for us, and we will continue to build scale through new investments, including the Kenhardt project under construction and the new Grootfontein project secured in the fifth bidding round," said Scatec CEO Terje Pilskog.
Scatec's move to free up its resources in South Africa comes at a time when this energy-starved country plans to accelerate renewables deployment with close to 15 GW capacity to be auctioned under a new ministerial determination (see South Africa To Launch Tenders For Around 15 GW RE Capacity).