Scatec ASA

Environmental & Social Information • Dec 11, 2023

Energising tomorrow: Scatec ignites one of the world's largest hybrid solar and battery project in South Africa

Energising tomorrow: Scatec ignites one of the world's largest hybrid solar and battery project in South Africa

Oslo / Cape Town, 11 December 2023: In a significant step towards a sustainable

and resilient future, Scatec ASA, a leader in renewable energy solutions, has

officially started producing and supplying electricity to the national grid from

the three Kenhardt plants in the Northern Cape Province, in South Africa.

The Kenhardt project is positioned to make a notable impact on the renewable

energy landscape as one of the world's first and largest hybrid solar and

battery storage facilities. With an installed solar capacity of 540 MW and a

battery storage capacity of 225MW/1,140MWh, this innovative and large-scale

project delivers 150 MW of dispatchable power from 5 am to 9.30 pm year-round to

the national grid under a 20-year Power Purchase Agreement with Eskom.

With a total investment of approximately USD 1 billion, the Kenhardt project

marks the largest commitment in Scatec's history and will generate solid returns

to Scatec's shareholders. The project debt is provided by a group of lenders

which includes The Standard Bank Group as lead arranger and British

International Investment (BII).

"Today, we embark on an exciting journey into a new era of energy solutions. The

Kenhardt project symbolises not only a technological triumph but a commitment to

shaping a sustainable future," says Terje Pilskog, CEO of Scatec. "This is more

than just a power plant; it's a testament to the limitless potential of

integrating solar and battery storage to meet the evolving energy needs of today

and tomorrow. I would like to congratulate the team of Scatec 'changemakers' who

have delivered this innovative project on schedule, within budget and with good

HSSE performance and thank all partners and stakeholders who have been integral

to this success."

A hybrid solar and battery storage plant integrates solar and battery

technologies, overcoming intermittency challenges and bolstering grid stability.

With the ability to deliver reliable power in low or no sunlight, the integrated

storage enhances overall reliability. Dispatchable power production and

releasing stored energy during peak demand make these plants ideal for meeting

region-wide energy needs during high consumption periods.

Jan Fourie, EVP of Sub-Saharan Africa, emphasises the significance of this

endeavour, stating, "This isn't just about powering homes; it's about empowering

communities. The Kenhardt project showcases the resilience and reliability of

renewable energy, proving it to be a steadfast source of electricity capacity

for the grid. Dispatchable renewables are the future."

"The progression from the development phase through construction, and now

reaching the stage of commercial operation, has been a rewarding experience. We

are ready to generate electricity and play a vital role in advancing South

Africa's green energy production with this innovative hybrid energy solution,"

adds Fourie.

Scatec holds 51% of the equity and H1 Holdings, our local Black Economic

Empowerment partner, owns the remaining 49%. This collaboration is not just

about generating power; it's about empowering and fostering sustainable growth.

For further information, please contact:

For analysts and investors: Andreas Austrell, VP IR, phone: +47 974 38 686,

andreas.austrell@scatec.com (mailto:andreas.austrell@scatec.com)

For media: Meera Bhatia, SVP Communications & Government Affairs, phone:

+47 468 44 959, meera.bhatia@scatec.com (mailto:meera.bhatia@scatec.com)

Notes to editors:

At peak construction the site employed 2,600 workers, with a high proportion of

women, fuelling local employment and community benefits. Spanning 879 hectares

and measuring 10 km North to South, construction started in July 2022 and

included the installation of almost 1 million PV modules. The battery facility

comprises 456 units, each matching the size of a shipping container, weighing

30 tonnes. The extensive project involves more than 9,000 kilometres of cabling,

equivalent to the distance from Norway to South Africa. Notably, the project

outperformed fossil fuels in a competitive bid, cementing renewables' ascendance

as the most cost-effective electricity source.

About Scatec

Scatec is a leading renewable energy solutions provider, accelerating access to

reliable and affordable clean energy emerging markets. As a long-term player, we

develop, build, own, and operate renewable energy plants, with 4.3 GW in

operation and under construction across four continents today. We are committed

to grow our renewable energy capacity, delivered by our passionate employees and

partners who are driven by a common vision of 'Improving our Future'. Scatec is

headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the

ticker symbol 'SCATC'. To learn more, visit www.scatec.com

(https://scatec.com/) or connect with us on LinkedIn

(https://www.linkedin.com/company/scatec).

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act