NEWS

South Africa has added a major new asset to its power system with the commercial operation of the 273-megawatt (MW) Grootfontein solar photovoltaic (PV) project in the Western Cape. The facility is the first project from Bid Window 5 of the country’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) to reach full commercial operation.

Developed by Norwegian renewable energy company Scatec ASA in partnership with local investors, the project is located approximately 150 kilometres north-east of Cape Town and is now the largest co-located solar PV facility in the Western Cape. Its commissioning comes at a critical time as South Africa continues to face electricity shortages, ageing coal infrastructure, and the need to diversify its energy mix.

Once fully operational, the Grootfontein solar plant is expected to generate around 700 gigawatt-hours (GWh) of electricity annually—enough to supply more than 180,000 households. The project is also projected to cut carbon dioxide emissions by approximately 630,000 tonnes per year, reducing reliance on coal-fired generation.

Industry observers view the completion of Grootfontein as a significant milestone for South Africa’s renewable energy programme. Bid Window 5, launched in 2021, experienced delays due to rising global equipment costs, supply chain disruptions, and grid connection constraints. The successful delivery of the project demonstrates that large-scale renewable developments can still reach completion despite these challenges.

Electricity generated by the facility is sold to state-owned utility Eskom under a 20-year power purchase agreement (PPA), providing long-term revenue certainty for investors and lenders. Since its launch in 2011, the REIPPPP has enabled South Africa to procure nearly 9 gigawatts of renewable energy capacity through multiple bidding rounds.

The project’s ownership structure reflects the localisation and transformation objectives embedded in the REIPPPP framework. Scatec holds a 51% stake, South African Black Economic Empowerment firm H1 Holdings owns 46.5%, while the remaining 2.5% is held by the Grootfontein Local Community Trust, ensuring direct community participation in the project’s long-term benefits.

In addition to electricity generation, the project is expected to deliver broader socio-economic benefits, including local job creation, procurement opportunities, and dividend flows to community stakeholders.