Scatec reaches financial close in Botswana and prepares for construction start

Oslo, 19 December 2024: Scatec ASA, a leading renewable energy provider, has reached financial close for the second 60 megawatt (MW) of the 120 MW Mmadinare Solar Complex in Botswana and is preparing for construction start.

In August 2022, Scatec, signed a binding 25-year power purchase agreement (PPA) with Botswana Power Corporation (BPC) for a 60 MW solar PV facility in the Mmadinare District. In the third quarter 2023, Scatec was awarded a 60 MW expansion of the project, taking the total capacity to 120 MW.

The estimated total capital expenditure for the 120 MW project is BWP 1.5 billion (USD 108 million) with an estimated engineering, procurement, and construction (EPC) contract value to Scatec of BWP 1.2 billion (USD 88 million). The solar power plants are estimated to be financed by BWP 1.0 billion (USD 73 million) of non-recourse project debt, and the remainder by equity from Scatec. Financing for the projects will be provided by the First National Bank of Botswana (acting through its Rand Merchant Bank division) and the World Bank’s International Finance Corporation (IFC).

Scatec owns 100% of the project and will be the designated EPC company, as well as asset manager (AM) and operations and maintenance (O&M) service provider. Construction and operation of the power plants will be managed by Scatec’s organisation in South Africa. Scatec is targeting to reduce its long-term economic interest in the project by inviting additional equity partners.

"We mark another achievement for our renewable energy journey in Botswana as we start construction of the second phase of the project. By doubling the total capacity of the solar power plant, we demonstrate the effectiveness of our strategy, robust business model and drive to contribute to the green energy transition in Africa,” says Scatec CEO Terje Pilskog.

The plant will be located near Mmadinare, close to the former mining town of Selebi-Phikwe, 400 kilometres Northeast of the capital Gaborone. The solar power plant will ensure that approximately 48,000 tons of CO₂ emissions will be avoided and can power approximately 20,000 households annually.

For further information, please contact:
For analysts and investors: Andreas Austrell, VP IR, phone: +47 974 38 686, andreas.austrell@scatec.com
For media: Meera Bhatia, SVP External Affairs & Communications, phone: +47 468 44 959, meera.bhatia@scatec.com

About Scatec 
Scatec is a leading renewable energy solutions provider, accelerating access to reliable and affordable clean energy emerging markets. As a long-term player, we develop, build, own, and operate renewable energy plants, with 4.8 GW in operation and under construction across four continents today. We are committed to grow our renewable energy capacity, delivered by our passionate employees and partners who are driven by a common vision of ‘Improving our Future’. Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SCATC’. To learn more, visit www.scatec.com or connect with us on LinkedIn.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was published by Brage Krogsrud, IR Analyst at Scatec ASA, on 19 December 2024 at 07:34 CET