Renewable power producer Scatec has entered an agreement with the Lesotho Electricity Company and the Government of Lesotho to build the first IPP (Independent Power Producer) solar project in the country of 20MW.

The Power Purchase Agreement, Connection Agreement and Implementation Agreement were signed at an official ceremony held in Lesotho’s capital, Maseru, which marked the culmination of successful negotiations with the Lesotho Electricity Company and the Government of Lesotho.

The project will be funded by the Renewable Energy Performance Platform (REPP) and equity co-sponsors; Scatec, Norfund, One Power Lesotho, Izuba Energy and the Lesotho Pension Fund.

Jan Fourie, General Manager for Sub-Saharan Africa at Scatec, said, “We are proud to be the first IPP to develop a solar project in Lesotho, an important step for Scatec in the country.

“The Southern African region is a key market for Scatec, and a region with great potential for the development of affordable clean energy. Scatec is the leading solar IPP in the region, and we look forward to expanding our footprint and developing more renewable energy in the years to come,” says General Manager for Sub-Sahara Africa, Jan Fourie.

Scatec will build, operate and majority own the facility under a 25-year Power Purchase Agreement with financial close is expected early next year.

Africa backs global solar initiative

Earlier this month several African countries officially endorsed the One Sun One World One Grid global solar grid initiative launched by the UK and India at the UN Climate Change Conference 2021 in Glasgow.

The initiative seeks to maximise solar energy across the world and many African states view solar as an option to reduce the continent’s over-dependence on non-renewable sources such as coal.

The ambitious goal is to create a solar-powered electricity network that connects 140 countries. It is expected to reduce the global reliance on non-renewable energy sources such as coal and will enable nations to purchase solar power from each other.

“By trading energy from sun, wind and water across borders, we can deliver more than enough clean energy to meet the needs of everyone on earth,” the UK government said in a statement.

Countries that have endorsed the initiative include: Algeria, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Chad, Côte d'Ivoire, Democratic Republic of Congo and Djibouti. Others are Egypt, Ethiopia, Gabon, Gambia, Ghana and Guinea. Madagascar, Malawi, Mali, Mauritius, Mozambique, Namibia, Niger, Nigeria, Papua New Guinea and Rwanda, Senegal, Seychelles, Somalia, South Sudan, Sudan, Tanzania, Togo, Uganda, Zambia and Zimbabwe.