Renewable energy developer Scatec started commercial operation of its 273 MW Grootfontein solar power plant in the Western Cape on 6 December 2025, marking the launch of the largest co-located solar photovoltaic (PV) cluster in the province. The plant sits about 150 km north-east of Cape Town and is expected to generate around 700 GWh of clean energy a year.
According to Scatec, Grootfontein is the first solar project to reach commercial operation under Round 5 of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), the government scheme used to add privately developed generation capacity to the national grid.
A milestone for the province’s renewables
At 273 MW, the plant ranks as the largest co-located solar PV cluster in the Western Cape. Scatec says the facility is expected to produce roughly 700 GWh of clean electricity each year, enough to abate an estimated 630,000 tonnes of carbon dioxide emissions annually.
The project is underpinned by a 20-year power purchase agreement, providing a long-term contracted offtake for the electricity generated. Scatec will provide operations, maintenance and asset management services across the plant’s operating life, according to the company.
Ownership and community stake
Ownership of the Grootfontein plant is shared among three parties, with a portion held directly by a local community trust. According to Scatec, the equity is split as follows:
- Scatec holds 51% of the project.
- H1 Holdings, the local black economic empowerment (BEE) partner, holds 46.5%.
- The Grootfontein Local Community Trust holds 2.5%.
The community trust’s 2.5% equity stake is intended to channel a share of the project’s benefits to people living near the plant, a structure commonly used in South African renewable energy projects developed under the REIPPPP framework.
What it means for the grid
As the first Round 5 solar project to reach commercial operation, Grootfontein is an early marker of progress for that procurement round. The plant’s expected annual output of about 700 GWh adds new utility-scale solar capacity to the system, while the long-term power purchase agreement and Scatec’s ongoing operations and maintenance role are designed to support stable, contracted delivery over the next two decades.
The combination of large-scale generation, a 20-year offtake agreement, BEE participation through H1 Holdings and a direct community stake reflects the model South Africa has used to expand its renewable energy fleet through the REIPPPP, according to the project’s announced structure.
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