Norwegian renewable energy company Scatec has signed a tri-lateral agreement with the Lesotho Electricity Company and the Government of Lesotho for the construction of a 20MW solar project. Representing the country’s first-ever utility scale solar project, as well as the first independent power producer (IPP) project, the grid connected plant will be significant in the country’s journey to a green energy future while furthering the company’s penetration in African markets.

Through a signed Power Purchase Agreement, Connection Agreement, and Implementation Agreement, Scatec will build, operate, as well as majority own the solar plant. The power purchase agreement covers a 25-year period with financial closure expected during Q1 of 2022.

“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,” stated Jan Fourie, General Manager for sub-Saharan Africa, Scatec.

With only 6% of the country currently connected to the national grid, the solar project will be critical in enhancing energy access and security. The project will not only increase domestic renewable energy capacity, but will reduce electricity imports for the southern African country.