Portfolio Optimization: Scatec Sells 40 MW Solar Power Plant in Mozambique to Globeleq

Oslo, Norway - Norway-based Scatec has signed an agreement to sell a majority stake in the 40 MW Mocuba solar power plant in Mozambique. The 52.5% block of shares will go to independent power producer Globeleq for USD 8.5 million (NOK 85 million).

"This transaction is in line with our strategy to optimise our portfolio, which includes the divestment of smaller assets in non-focus markets. The sale will release capacity for our focus markets and capital for new investments in renewable energy", says Terje Pilskog, CEO of Scatec.

Globeleq has over 2.1 GW of power generation capacity in operation or under construction and is 70 percent owned by British International Investment and 30 percent owned by Norfund.

The Mocuba solar power plant is located in the Zambézia province of Mozambique and was commissioned in August 2019. The project has an annual production of approximately 75 GWh and has a 25-year PPA with the state-owned utility EDM. As part of the transaction, Globeleq will assume responsibility for the operation and maintenance of the power plant as well as asset management.

Scatec anticipates a projected net income of approximately $4 milliond on a consolidated basis and $3 milliond on a pro rata basis. The final accounting impact will be communicated at closing of the transaction, which is subject to customary approvals and is expected to be completed in the first half of 2024.

Source: IWR Online, 18 Jul 2023