Scatec Offloads Hydropower Assets in Africa

(3 Minutes Read)

 Scatec ASA has finalised the sale of its 51% interest in its African hydropower joint venture with Norfund and British International Investment (BII), in line with its strategic goals. This follows the initial announcement made in a stock exchange notice on July 30, 2024.

The deal was completed for USD 167 million, based on a valuation as of December 31, 2023. After adjusting for cash movements between the valuation and closing dates, the net proceeds are expected to be around USD 161 million. These funds will support Scatec’s self-funded growth strategy and help reduce corporate debt.

The transaction encompasses the operational 255 MW Bujagali hydropower plant in Uganda and a development portfolio that includes the 361 MW Mpatamanga project in Malawi and the 206 MW Ruzizi III project, which spans Rwanda, the DRC, and Burundi. Additionally, as part of the agreement, the Hydro Africa team will transition to TotalEnergies under the newly established entity SN Power AS.

Scatec’s CEO, Terje Pilskog, expressed satisfaction with the closure of the transaction, stating, “We are pleased to sell our stake in the African hydropower assets to TotalEnergies. This divestment aligns with Scatec’s strategy to optimize its portfolio and focus investments on core markets, particularly in solar, onshore wind, and battery energy storage. We believe TotalEnergies will be a strong owner moving forward and wish to thank the hydropower team for their hard work and dedication over the years.”

The sale is expected to result in a proportional accounting effect of approximately USD 30 million and a consolidated impact of around USD 50 million, mainly due to foreign currency fluctuations. These effects will be reflected in Scatec’s financial results for the first quarter of 2025.

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Scatec is a prominent provider of renewable energy solutions, dedicated to enhancing access to reliable and affordable clean energy in emerging markets. As a long-term player, the company develops, builds, owns, and operates renewable energy plants, with 4.8 GW currently in operation and under construction across five continents.