Norwegian renewable energy solutions provider Scatec has signed an agreement to sell its 42% equity share in a solar plant in South Africa to a subsidiary of a fund managed by asset manager Stanlib Asset Management Proprietary Limited.

Scatec will sell the Upington power plant for NOK569 million (US$56.9 million). The 258MW project generates about one-third of the proportionate power production EBITDA in South Africa for Scatec. The company will use the new capital to invest in renewable energy.

“South Africa remains a focus market for us, and we will continue to build scale through new investments, including the Kenhardt project under construction and the new Grootfontein project secured in the fifth bidding round,” said Scatec CEO Terje Pilskog.

After the transaction, Scatec will continue providing operations, maintenance, and asset management services to the Upington power plant.

The power plant started commercial operation in 2020 and was awarded in the fourth bidding round under the Renewable Energy Independent Power Producer Programme. The programme is aimed at bringing additional supply to South Africa’s electricity system through private sector investment in solar, wind, biomass and small hydro, among others.

Norwegian Ministry of Foreign Affairs’ development finance institution Norfund is also selling its 18% equity share to Stanlib as part of the same transaction.