News Flash
- Norway’s Scatec has entered into a 25 year power purchase agreement (PPA) with the Lesotho Electricity Company and the government of Lesotho to build, own and operate at 20MW solar PV plant in that country.
- Financial close is expected Q1 2022.
- It will be the first utility scale solar PV project in the small mountain kingdom.
The 20 MW project will be funded by the Renewable Energy Performance Platform and equity co-sponsors – Scatec, Norfund, One Power Lesotho, Izuba Energy and the Lesotho Pension Fund.
Lesotho is a small, land-locked country located within the borders of South Africa. It is nicknamed the “Kingdom of the Sky” due to its mountainous terrain and high altitude – with 80% of the country located at least 1800m above sea level.
Despite Lesotho’s rich endowment of renewable energy resources there are no utility-scale projects in operation. The country has one of the world’s lowest electrification rates with only 10% of people living with electricity in rural areas and under 50% in urban regions.
The 20 MW solar plant will increase Lesotho’s installed generation capacity by 30%. It will improve the country’s energy independence and ultimately provide Lesotho citizens with more affordable and sustainable energy.
“We are proud to be the first IPP to develop a solar project in Lesotho, an important step for Scatec in the country. The Southern African region is a key market for Scatec and a region with great potential for the development of affordable clean energy. Scatec is the leading solar IPP in the region, and we look forward to expanding our footprint and developing more renewable energy in the years to come,” says Scatec sub-Saharan Africa GM Jan Fourie.
Author: Bryan Groenendaal
