Norwegian independent power producer (IPP) Scatec revealed that three of its operating solar PV plants with a combined capacity of 190 MW in South Africa have been refinanced.

 The Kalkbult, Dreunberg, and Linde solar plants are refinanced by Scatec. The refinancing proceeds based on its 45% stake in these plants, amount to 540 million South African rands go to Norwegian independent power producers (IPP).

According to the Raymond Carlsen-led company, the conditions of the deal include an expansion in the amount of debt, reduced margins, an extension of the life, and the release of cash from debt reserve accounts.

According to Scatec, this transaction has a minor impact on the expected future dividends of the three power plants. According to the IPP, the refinancing is also set to benefit the South African authorities through a 50/50 profit division between the power plants’ shareholders and the authorities.

The three solar PV plants have been in operation since 2014 and have a combined capacity of 190 MW. The plants were built under the Renewable Energy Independent Power Producer Supply Programme (REIPPP). The electricity produced by these plants is sold to the state-owned utility Eskom under power purchase agreements (PPAs).