Focus on Core Markets: Scatec Sells Stake in African Hydropower Plants to Total Energies

Oslo, Norway - Norwegian renewable power producer Scatec has signed an agreement with French energy group Total Energies to sell Scatec's 51 percent stake in the African hydropower joint venture with Norfund and British International Investment (BII).

The sale includes Scatec's indirect interest through SN Power in the operational 255 MW Bujagali hydropower plant in Uganda and a development portfolio consisting of the 361 MW Mpatamanga power plant in Malawi and the 206 MW Ruzizi III power plant on the border between Rwanda, the Democratic Republic of Congo and Burundi. The proceeds from the transaction will be used to support Scatec's self-funded growth plan.

The joint venture was established in 2021 between Scatec and Norfund, the Norwegian investment fund for business activities in developing countries, as part of the acquisition of SN Power. In 2022, BII joined as a co-investor. According to Scatec, the transaction supports the business continuity of hydropower activities on the African continent, including commitments to projects and stakeholders.

“Our decision to sell our African hydropower assets is in line with our strategy to focus the largest share of our investments in our core markets and on solar, wind and battery energy storage, while divesting assets in non-focus markets. We are pleased to announce today’s transaction, as we believe Total Energies will be a strong asset owner going forward, with the ability to further develop the projects and contribute to the energy transition in Africa,” says Scatec CEO Terje Pilskog.

The transaction is subject to conditions and approvals from stakeholders, including lenders and joint venture partners, and is expected to close in the first half of 2025. According to Scatec, the transaction price and final accounting impact will not be disclosed until closing for commercial reasons.

Source: IWR Online, 30 Jul 2024