ITOCHU firm to construct Africa's largest solar power plant in South Africa

ITOCHU Corp said Tuesday that Scatec Solar (Norway), in which ITOCHU owns a 37.5% stake, has concluded an agreement with Eskom, the South African state-owned power utility, to sell power for a period of 20 years.

The company was selected by the South African government as a preferred bidder for solar (photovoltaic) power plant (total 115 MW) in Phase II bidding conducted in May 2012. Scatec Solar also concluded a financial agreement with a local bank and construction will begin with the aim of starting operations at the end of 2014.

Under this project, the 160-ha site will be covered by approximately 460,000 solar (photovoltaic) panels, and is expected to generate upward of 225 GWh/year. The plant will provide power for consumption equivalent to that of approximately 53,000 households, and at the same time carbon dioxide reduction of 190,000 tons/year is expected.

The South African government sets a future target of 20% of the country's electric demand being supplied by power generated from renewable energy sources such as solar power, and this project falls under the REIPPP scheme.

© JCN Newswire