The long-term viability of six solar plants in South Africa, with a projected capacity to generate a combined 1,000GWh of power, have been all but guaranteed thanks to an offer from The Multilateral Investment Guarantee Agency (MIGA). The power from the plants is to be sold to Eskom under 20-year PPAs.

The project finance for three existing plants (Kalkbult, Dreunberg and Linde) and three others which are under construction (Sirius, Dyason’s Klip 1 and Dyason’s Klip 3) has been guaranteed by MIGA which ensures the costs for the construction, ownership, operation and maintenance of the plants is covered.

MIGA EVP and CEO Keiko Honda hopes the investment will decrease perceived levels of risk and increase the capacity for sponsors.

The guarantees cover 90% of investments by Scatec Solar ASA for up to 15 years against the risks of Breach of Contract and Transfer Restrictions and Convertibility.