Norwegian developer Scatec is selling part of its stake in three solar power plants in South Africa and has completed the sale of its entire stake in a Rwandan facility. It says the agreements will fund further growth opportunities.
Norway’s Scatec will sell part of its ownership of three solar power plants in South Africa. It has also completed the sale of its entire stake in an 8.5 MW factory in Rwanda.
In South Africa, the agreement with Greenstreet 1 Proprietary Limited will see Scatec reduce its stake in the Kalkbult plant from 46% to 13% and its ownership in the Linde and Dreunberg solar power plants from 44% to 12% for a total of ZAR921 million ($50). million).
The three plants all came into operation in 2014, have a combined capacity of 190 MW and have a 20-year PPA with South African national utility Eskom.
Greenstreet 1 Proprietary limited is a subsidiary of Stanlib Infrastructure Fund II, managed by Stanlib, South Africa’s second largest asset manager and part of Standard Bank Group Limited.
Scatec has confirmed that it remains committed to long-term investments in South Africa and plans to continue to provide operational, maintenance and asset management services to the three facilities.
Terje Pliskog, CEO of Scatec, said the transaction reflects the company’s strategy to recycle capital into new investments. “South Africa will remain a core growth market for us, and we will continue to build scale through new investments,” he said.
The transaction will be carried out in two steps. The first phase is expected to be completed in the second half of 2024 and the second in the first half of 2025.
Meanwhile, in Rwanda, investors Fortis Green Fund I Rwanda Holdings Ltd and Axian Energy Green Ltd acquired Scatec’s 54% stake in the site, which was first commissioned in 2014, for $1.38 million.
Scatec has confirmed that it has also terminated the power plant’s operations, maintenance and asset management agreements and officially ceased all operations in Rwanda.
“We continue to deliver on our strategy to consolidate our portfolio by divesting assets in non-core markets and recycling capital into new investments in renewable energy,” Pliskog explains. “We are confident that the new owners will take good care of the solar power plant and continue to provide clean, renewable energy to the Republic of Rwanda for years to come.”
Scatec specializes in the development of sustainable energy in emerging economies. Earlier this year, Pilskog spoke with pv magazine about current projects in South Africa, Botswana and Egypt.
Figures from the International Renewable Energy Agency state of Rwanda had 25 MW of solar power at the end of 2023, the same figure as the past five years. In February, the European Union signed a raw materials deal with the country, which is expected to support the expansion of solar energy in Rwanda.
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