Scatec Signs Agreement to Sell Solar Power to Eskom in S.Africa

Scatec Solar, a Norwegian solar developer in which Japanese trading company Itochu Corp. (8001) has a stake, will sell solar power for 20 years to Eskom Holdings SOC, the South African state-owned utility.

The electricity sales agreement was signed May 9 with power generation expected to start at the end of 2014, Itochu said in a statement today.

Scatec is building a plant in Linde in the Northern Cape province and another in Dreunberg in Eastern Cape, which will have a combined capacity of 115 megawatts, Daisuke Soda, an Itochu spokesman, said by phone today.

Itochu has a 37.5 percent stake in Scatec Solar, while Scatec AS has a majority stake, he said.

To contact the reporter on this story: Chisaki Watanabe in Tokyo at cwatanabe5@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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