Release by Scatec partners with IFC for clean and affordable power
to Africa
13 December 2023: Release by
Scatec (Release), has signed a USD 100 million loan agreement with
the World Bank's International Finance Corporation (IFC). The loan
agreement is part of a larger partnership to provide a simpler,
more affordable, and cleaner offering of power to African
utilities, which also includes a USD 65 million guarantee facility
to support the payment obligations of Release’s customers.
The objective is to replace costly diesel and expand
electrification in the region.
Release operates on a unique leasing model, providing flexible
short- or long-term contracts for the mining and utilities market,
primarily in Africa, based on modular, movable and redeployable
equipment.
IFC is the largest global development institution renowned for
its instrumental role in supporting private sector development, and
the loan from IFC will provide funding on a portfolio level for
Release’s further development and installation of assets to be
leased to African utilities.
The purpose of the guarantee facility is to guarantee payments
to Release from the counterparties leasing the solar and battery
equipment. The structure provides risk mitigation for Release while
allowing African utilities and governments to secure affordable
renewable energy from solar and batteries, without the financial
commitment required for the conventional infrastructure projects.
The partnership with IFC will thereby represent a significant
catalyst for further growth of the Release platform.
The first project where the combined project loan and guarantee
structure will be applied is for a 35 MW solar and 20 MWh battery
project in N’djamena in Chad, where a lease contract has already
been signed. Release’s existing and operating projects in Northern
Cameroon of 36 MW of solar PV and 20 MWh of batteries will also
form part of the portfolio financing and discussions on extending
the capacity of these projects are currently ongoing with the
utility.
“This highly innovative solution enables countries to deploy
solar power projects quickly, allowing African countries to swiftly
ramp up to meet rising energy demand with clean power solutions,”
said Sarvesh Suri, IFC’s Regional Industry Director for
Infrastructure and Natural Resources, Africa. “Our
ambition is to deploy this replicable solution, in partnership with
Release in multiple countries across sub-Saharan Africa within a
short timeframe, allowing more people to benefit from the economic
growth that comes with reliable, affordable access to
electricity.”
“I am delighted that, through this partnership between Scatec
and IFC, Chad has been chosen as the first country to benefit from
a solar power plant to support the government's efforts to meet the
energy access needs of our populations,” said Alixe
Naïmbaye, Minister of Hydrocarbons and Energy of
Chad. “In addition, the liquidity guarantee facility
granted by the World Bank to Société Nationale d'Electricité
underlines the strong commitment of the World Bank Group to
facilitating partnerships with private investors.”
“We are excited to secure the partnership with IFC for our
innovative solar leasing solution Release. IFC’s support is
testimony to the solid business model of Release, the general
demand and need for such an innovative solution in the market and
our proven track record in developing renewable energy solutions,”
says Scatec CEO, Terje Pilskog, who is also Chair of
Release.
“The innovative approach of Release follows a dynamic rolling
delivery model of build, connect, and deliver. Looking ahead,
Release is actively exploring additional opportunities in Cameroon,
Liberia, and the rest of West- and Central-Africa, reinforcing its
commitment to advancing renewable energy solutions across the
African continent and other select markets,” says Release
CEO Hans Olav Kvalvaag.
This significant step comes after Release recently raised USD
102 million in funding from Climate Investor One, a fund managed by
Climate Fund Managers, a leading climate-centric blended finance
fund manager backed by FMO, the Dutch Development Bank, and Sanlam
Infraworks, part of the Sanlam Group of South Africa.
For further information, please contact: For
analysts and investors: Andreas Austrell, VP Investor Relations,
tel: +47 974 38 686, andreas.austrell@scatec.com For media: Meera
Bhatia, SVP Communications & Government Affairs, tel: +47 468
449 59, meera.bhatia@scatec.com
For images, please see Release image gallery
About Scatec Scatec is a leading
renewable energy solutions provider, accelerating access to
reliable and affordable clean energy emerging markets. As a
long-term player, we develop, build, own, and operate renewable
energy plants, with 4.3 GW in operation and under construction
across four continents today. We are committed to grow our
renewable energy capacity, delivered by our passionate employees
and partners who are driven by a common vision of ‘Improving our
Future’. Scatec is headquartered in Oslo, Norway and listed on the
Oslo Stock Exchange under the ticker symbol ‘SCATC’. To learn
more, visit www.scatec.com or connect with us
on LinkedIn.
About ReleaseRelease is a modular and movable
solar PV and Battery Energy Storage offering “energy-as-a-service”.
The equipment is pre-financed and deployed under a simple and
flexible leasing contract. The mobility of the equipment enables
Release to assess its useful lifespan, enabling the company to
provide cost-effective short-term contracts. Release is gaining
momentum in the market and has projects in operation and under
construction in Cameroon, South Africa, Mexico, and South Sudan,
boasting a combined capacity of 47 MW of solar PV and 20 MWh of
battery storage.
Release is owned 68% by Scatec and 32% by Climate Investor One,
managed by CFM.
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act
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