Africa's biggest solar, battery facility reportedly begins operations

AFRICAN BUSINESS AND ECONOMYFebruary 1, 2024 at 7:47 PM UTC

The largest integrated solar and battery power plant in Africa, developed by Norwegian company Scatec, has commenced electricity delivery in South Africa. The Climate Investment Fund managed by Norfund has invested over $38 million in the project, highlighting the amplifying role of battery storage in advancing solar energy across the African continent.

Norfund, in collaboration with British International Investment, has participated in the project through the South African entity H1 Capital. H1 Capital holds a 49% stake in the project and is recognized as a "Black Economic Empowerment" investor in South Africa, promoting economic empowerment for historically disadvantaged communities.

Situated in Kenhardt, the facilities represent some of the largest hybrid solar and battery storage installations globally. With a capacity of 540 MW of solar energy and 225 MW/1140MWh of battery storage, the facility is poised to significantly contribute to the national power grid, operating from 5 am to 9:30 pm.

Key Takeaways

South Africa currently ranks as the 14th largest emitter of greenhouse gases globally, primarily due to its heavy reliance on coal, which accounts for nearly 90% of the country's energy consumption. To meet its climate goals, the Cape Town-based think tank Meridian estimates that South Africa requires investments exceeding $25 billion USD in renewable energy over the next decade. This highlights the urgent need for a transition towards cleaner energy sources. The Kenhardt project, a significant step in this direction, is anticipated to make a substantial annual contribution by avoiding the emission of approximately 870,000 tons of CO2. To put this into perspective, this reduction is equivalent to the emissions from about 430,000 fossil fuel-powered cars in Norway.

South Africa

Climate Investment Fund

Norfund

Scatec

Energy