Scatec Closes USD 102M Capital Financing Round

scatec

Scatec, an Oslo, Norway-based renewable energy solutions provider, closed a USD102m capital financing round to further accelerate the growth of “Release by Scatec” as a separate platform.

Climate Fund Managers, a climate-centric blended finance fund manager backed by FMO, the Dutch Development Bank, and Sanlam Infraworks, part of the Sanlam Group of South Africa, invested in Release via its Climate Investor One (CIO) fund; a blended finance vehicle focused on renewable energy infrastructure in emerging markets. As previously communicated, CFM will contribute USD 55m in equity for a 32% stake in Release. Scatec will retain the majority shareholding of 68%. CFM will also provide shareholder loans totalling USD 47m, part of which will be on concessional terms.

Release was established by Scatec ASA in 2019 to offer a flexible and mobile leasing solution of pre-assembled and modular solar and battery equipment for the mining and utilities market It represents an innovative approach to distributed generation solar PV and Battery Energy Storage Systems (BESS) for projects beginning from 5MWp blocks, matching a need for delivering simple and on-demand renewable energy solutions. This modular solution comprises pre-assembled and containerised movable trackers and storage units. The equipment is pre-funded and deployed through a straightforward and adaptable leasing agreement, lasting at least 5 years and up to 15 years, akin to leasing a car. The mobility of the equipment enables Release to assess its useful lifespan, enabling the company to provide cost-effective short-term contracts, even for 5-year leases. This flexibility ensures competitive pricing while maintaining high-quality service and technology.

Release will now be accounted for as a joint venture investment in the group accounts of Scatec, generating an accounting gain of approximately USD 40m in the consolidated financials at closing. There will be no impact on the proportionate financials from the transaction.

Release is experiencing good traction in the market, particularly towards African utilities. It has projects in operation and under construction in Cameroon, South-Africa, Mexico, and South-Sudan with a total capacity of 47 MW solar PV and 20 MWh of battery storage and has additional contracts for 35 MW solar PV and 20 MWh of storage in Chad, in addition to maturing its advanced pipeline. Release intends to replicate its rapid deployment model to address shortfalls in local grid power supplies throughout the region.

Led by Scatec CEO, Terje Pilskog, and also the Chair of Release, Scatec is a renewable energy solutions provider, accelerating access to reliable and affordable clean energy emerging markets. As a long-term player, they develop, build, own, and operate renewable energy plants, with 4.4 GW in operation and under construction across four continents today. Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SCATC’.

FinSMEs

28/10/2023