Scatec Expands Solar Energy Footprint with New Project

Scatec Takes Major Steps in Solar Energy Development

Oslo: Scatec ASA, a prominent player in renewable energy solutions, is gearing up for a significant milestone with the financial closure of the second phase of the Mmadinare Solar Complex in Botswana. The second 60 megawatt (MW) installment of this project, part of a larger 120 MW initiative, is set to commence construction, marking a pivotal moment in Scatec's renewable energy journey.

A Milestone Power Purchase Agreement

This ambitious project started back in August 2022, when Scatec secured a binding 25-year power purchase agreement (PPA) with Botswana Power Corporation (BPC) for the initial 60 MW solar photovoltaic (PV) facility. This strategic move positioned Scatec to enhance energy production and sustainability within the region. In the latter part of 2023, an exciting development occurred as Scatec was awarded an expansion for an additional 60 MW, culminating in a total capacity of up to 120 MW.

Investment and Financing Insights

The financial blueprint for this groundbreaking solar project is impressive, with a total estimated capital expenditure of BWP 1.5 billion (about USD 108 million). Among this, Scatec anticipates an engineering, procurement, and construction (EPC) contract value of BWP 1.2 billion (USD 88 million). A significant portion of the financing, around BWP 1.0 billion (USD 73 million), will be sourced from non-recourse project debt, while the remainder will come from Scatec's equity contributions. Notably, First National Bank of Botswana and the World Bank’s International Finance Corporation (IFC) are poised to provide essential funding for the project.

Full Ownership and Management Plans

Scatec holds complete ownership of the Mmadinare Solar Complex, establishing itself as the designated EPC company. Additionally, Scatec will assume roles related to asset management and operations and maintenance services. The company's South Africa organization will oversee the construction and operational management of the power facilities, ensuring the project's success and longevity. As part of its strategic vision, Scatec aims to invite additional equity partners, which will help manage its long-term economic interest in the project.

Contributing to Africa's Green Energy Transition

In a statement from Scatec's CEO, Terje Pilskog, he emphasizes the importance of this project in the broader context of renewable energy initiatives in Africa. He stated, “This is another significant achievement in our renewable energy journey in Botswana. By commencing construction of the second phase, we are not only doubling the capacity of the solar power plant but also reinforcing our commitment to the green energy transition in the region.”

Environmental Impact and Community Benefits

The location chosen for the Mmadinare Solar Complex is not just strategic; it is environmentally conscious. The new facility is expected to prevent approximately 48,000 tons of CO₂ emissions annually. This substantial reduction underscores Scatec's commitment to sustainability and positions it as an essential player in the fight against climate change. Furthermore, the plant aims to provide clean energy to an estimated 20,000 households, amplifying its positive impact on local communities.

About Scatec's Global Operations

Scatec has emerged as a leader in the renewable energy sector, with an extensive portfolio that spans across continents. The company is committed to developing, constructing, and operating renewable energy plants, securing a total of 4.8 GW currently in operation or under development. Scatec’s headquarters in Oslo, Norway, underscores its status as a key player in global energy initiatives. The team at Scatec is fueled by a vision of 'Improving our Future,' which guides their operations and growth strategies.

For anyone seeking further details about Scatec or this specific project, please contact Andreas Austrell, VP of Investor Relations, at +47 974 38 686 or via email. Media inquiries can be directed to Meera Bhatia, SVP External Affairs & Communications, at +47 468 44 959.

Frequently Asked Questions

What is the purpose of the Mmadinare Solar Complex?

The Mmadinare Solar Complex aims to provide renewable energy capacity of 120 MW, supporting Botswana's energy needs while reducing carbon emissions.

Who is funding the Mmadinare Solar Project?

The project is financed by non-recourse project debt from First National Bank of Botswana and the World Bank’s International Finance Corporation, alongside equity from Scatec.

How many households will benefit from the solar power plant?

Approximately 20,000 households are projected to receive clean energy from the Mmadinare Solar Complex.

What is the environmental impact of the solar complex?

The solar power plant is expected to avoid around 48,000 tons of CO₂ emissions, contributing positively to the environment.

Where is Scatec based and what is its operational scope?

Scatec is based in Oslo, Norway, and currently operates and develops renewable energy projects across four continents.

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