Scatec's Strategic Move in Renewable Energy
Scatec ASA is making waves in the renewable energy sector with its latest contract in Romania. The company has signed a 15-year Contract-for-Difference (CfD) with Opcom, the electricity market operator in Romania, covering about 70% of the anticipated production from a substantial 190 MW solar portfolio. This strategic deal positions Scatec as a prominent player in the emerging Romanian solar landscape.
Enhancements in the Romanian Energy Market
This contract is part of a broader initiative funded by the EU Modernisation Fund. This fund aims to help selected EU member states achieve their ambitious energy objectives. In the recent CfD auction, approximately 1.5 GW of capacity, covering solar PV and onshore wind technologies, was awarded, with the total projected auction capacity reaching 5 GW planned for future rounds.
Collaborative Efforts for Project Development
In Romania, Scatec is working closely with its local partner, Defic Globe, to advance its project portfolio. This collaboration is essential as they navigate the challenges of developing renewable energy projects in the Dolj and Olt counties. Both Scatec and Defic Globe recognize the attractive fundamentals of the Romanian market, including a clear agenda for energy transition and established offtake routes through various mechanisms.
Leadership Insights and Future Prospects
Terje Pilskog, CEO of Scatec, expressed confidence in the company's ability to leverage its global experience in renewable energy auctions as they expand into new markets. He stated, "We are very pleased with the award in Romania which demonstrates our ability to apply our global track record within renewable energy auctions to new markets." This perspective underlines Scatec's determination to establish a foothold in Romania's growing energy sector.
Financial Aspects and Project Execution
The total projected capital expenditure for the solar plant is approximately EUR 140 million. Scatec plans to finance this development through a combination of non-recourse financing and equity contributions from its partners, targeting around 75% leverage. The company expects to reach financial close and commence construction in the second half of 2025.
Ownership and Operational Structure
Post-completion of the projects, Scatec will hold a 65% ownership stake in the solar installations, while its partner, Defic Globe, will retain 35%. The latter will also handle the complete Engineering, Procurement, and Construction (EPC) of the solar plants. Furthermore, Scatec is dedicated to providing Operations & Maintenance (O&M) and Asset Management (AM) services for the entire portfolio.
Contact Information
For insights or inquiries regarding this development, analysts and investors can reach out to Andreas Austrell, VP of Investor Relations, at +47 974 38 686 or via email. For media inquiries, Meera Bhatia, SVP of External Affairs & Communications, is available at +47 468 44 959.
About Scatec
Scatec is renowned as a leading provider of renewable energy solutions, dedicated to accelerating access to affordable clean energy in emerging markets. The company has a portfolio of 5 GW of renewable energy assets operational or under construction across five continents, embodied by a vision of ‘Improving our Future’.
Learn More About Scatec
To explore more about Scatec and its ongoing initiatives, visit the company’s official website or connect on social media platforms.
About Defic Globe
Defic Globe stands out as an independent power producer and EPC contractor, committed to enhancing the clean energy transition. Their investments and operations span a variety of renewable energy sectors, exemplifying dedication to building a sustainable future.
Frequently Asked Questions
What is Scatec's recent contract in Romania about?
Scatec signed a 15-year CfD to cover 70% of projected production from a 190 MW solar portfolio in Romania.
Who is Scatec's partner for this project?
Scatec is collaborating with Defic Globe, a local partner, to develop the solar portfolio in Romania.
How much is the projected investment for the solar project?
The total capital expenditure for the project is estimated at EUR 140 million.
When is the construction of the solar plants expected to start?
Construction is projected to begin in the second half of 2025.
What will be the ownership structure of the solar plants?
Scatec will hold a 65% stake, while Defic Globe will maintain a 35% ownership.
