Norfund exits South African solar and battery project
The Climate Investment Fund, managed by Norfund, has exited the Kenhardt project.
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The Climate Investment Fund, managed by Norfund, has exited the Kenhardt project, South Africa’s first large-scale hybrid solar and battery facility, built by Norwegian company Scatec.
“Through early-stage financing, we mobilised private capital and helped make this groundbreaking project by Scatec a reality. Now that private investors are taking over our share as well, allowing us to reinvest in new projects, our contribution gains an additional multiplier effect,” said Bjørnar Baugerud, head of the Climate Investment Fund at Norfund.
Kenhardt, developed by Scatec and H1 Capital, is among the world’s largest hybrid plants, with 540 MW of solar power and 225 MW / 1,140 MWh of battery storage.
H1 Holdings has now partnered with Standard Bank to secure long-term equity financing of R1.921 billion (about $110.6 million), enabling an exit for the original investors – Norfund, British International Investment, and the Industrial Development Corporation.
“The 2022 investment was crucial to meet the local ownership requirement in the Kenhardt project, but it also illustrates how climate finance can play a catalytic role in the early stages of pioneering energy projects,” Baugerud added.
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