Scatec Powers Up with USD 102M in Capital Financing

Scatec, the Oslo-based renewable energy solutions provider, has closed a remarkable USD 102 million capital financing round.

This Scatec funding marks a pivotal moment for the growth of “Release by Scatec.”

Backing Scatec’s expansion is Climate Fund Managers, a climate-focused blended finance fund manager supported by FMO, the Dutch Development Bank, and Sanlam Infraworks, part of the Sanlam Group of South Africa.

They’ve invested through the Climate Investor One (CIO) fund, focused on renewable energy infrastructure in emerging markets.

This strategic investment injects USD 55 million in equity, granting Climate Fund Managers a 32% stake in Release.

Scatec will maintain the majority shareholding of 68%. Additionally, CFM will provide shareholder loans amounting to USD 47 million, part of which carries concessional terms.

Release, introduced by Scatec ASA in 2019, is a game-changer.

It offers a flexible and mobile leasing solution for pre-assembled modular solar and battery equipment, catering to the mining and utilities sector.

This innovative approach to distributed generation solar PV and Battery Energy Storage Systems (BESS) is designed for projects starting from 5MWp blocks, perfectly addressing the demand for simple and on-demand renewable energy solutions.

The core of this modular solution comprises pre-assembled and containerized movable trackers and storage units.

What sets Release apart is its pre-funded equipment, deployed through a flexible leasing agreement, much like leasing a car.

These agreements last a minimum of 5 years, with some stretching up to 15 years, ensuring cost-effectiveness and quality.

With the latest development, Release will be accounted for as a joint venture investment in Scatec’s group accounts, generating an accounting gain of around USD 40 million in the consolidated financials. The transaction will not impact proportionate financials.

Release is making waves, particularly in African utilities. With operational and under-construction projects in several countries and a growing pipeline, it’s evident that Release’s rapid deployment model is addressing the energy supply gaps in the region.

Scatec, led by CEO Terje Pilskog, has carved a niche as a renewable energy solutions provider, committed to making clean energy accessible in emerging markets.

Their long-term approach involves developing, building, owning, and operating renewable energy plants, with over 4.4 GW in operation and under construction across four continents.

This infusion of USD 102 million funding will undoubtedly accelerate Scatec’s mission to provide reliable and affordable clean energy to emerging markets, making a significant impact in the global transition to sustainable energy solutions.

Scatec Funding signifies a bright future for renewable energy.

ALSO READ: Delv AI Funding

Leave a Comment

Ravi Kishan Shines in ‘Maamla Legal Hai’: Netflix’s Hilarious Take on Courtroom Chaos Kamal Haasan: A Cinematic Maestro’s Journey Unveiled Hardik Pandya: All-Rounder Extraordinaire The Enchanting Journey of Rebecca Ferguson Chanda Kochhar: Banking Trailblazer