Renewable energy company Scatec's Kenhardt hybrid solar and battery storage project has officially started producing and supplying electricity to the national grid from its three plants in the Northern Cape.

The project has an installed solar capacity of 540 MW and a battery storage capacity of 225 MW, or 1 140 MWh, and delivers 150 MW of dispatchable power from 05:00 to 21:30 year-round to the national grid under a 20-year power purchase agreement with State-owned Eskom.

The $1-billion 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, including financial services firm the Standard Bank Group as lead arranger and UK development finance institution British International Investment.

“The Kenhardt project symbolises not only a technological triumph but a commitment to shaping a sustainable future,” says Scatec CEO Terje Pilskog.

“This is more than just a power plant; it is a testament to the limitless potential of integrating solar and battery storage to meet the evolving energy needs of today and tomorrow,” he comments.

He also congratulated the Scatec team for delivering the project on schedule, within budget and with good health, safety, security and environment performance, and thanked all partners and stakeholders.

A hybrid solar and battery storage plant integrates solar and battery technologies, overcoming intermittency challenges and bolstering grid stability. The integrated storage enhances overall reliability, the company says.

With dispatchable power production and the ability to release energy during peak demand, these plants can help meet region-wide energy needs during high consumption periods.

“This project 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,” says Scatec sub-Saharan Africa executive VP Jan Fourie.

“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. This collaboration is not just about generating power, it’s about empowering and fostering sustainable growth,” he adds.