By Mathias Maehlum – AfricanBrains
KLP (The Norwegian Government`s Pension Fund) and Norfund (Norwegian Investment Fund for Developing Countries) have agreed to invest 500 million Norwegian Kroner ($85 million) each to invest in wind, water and solar projects in South Africa.
Scatec Solar is starting their first solar projects in the country. The company will build solar power plants with a total capacity of around 350 MW in the next few years.
“In the coming years, investment in South Africa is the most important project for us. The development will be an important reference point when we go into the neighboring countries like Namibia and Botswana,” says Alf Bjørseth
CEO of Scatec Solar.
The Norwegian company is expecting to have a profit margin of at least 10%
The challenge of establishing solar power in Africa is that the investment costs are incredible high compared to the cost of setting up diesel generators, which typically are the types of systems that are dominating the energy production most places around the continent.
However, prices are lower in the long term and there is relatively low maintenance involved in running solar power plants. The electricity from diesel generators is one of the most expensive forms of energy that exists, and to stop global warming we need to replace them with renewable sources of energy. Solar insolation, or sunlight, is an abundant resource in many parts of Africa, and the further development of solar power in this continent will help ensure steady renewable growth worldwide and lower solar panel costs in the future.
Source: Scatec Solar