Scatec Solar partners to build 200 MW PV in Malaysia
Oslo, December 13, 2016: Scatec Solar has entered the Malaysian large-scale
solar energy market by joining forces with a local ItraMAS-led consortium that
has signed three 21-year Power Purchase Agreements (PPAs) with the country's
largest electricity utility, Tenaga Nasional Berhad (TNB).
The partnership covers three solar projects totaling nearly 200 MW and involves
a total investment of close to USD 300 million. Located in Merchang in the
north, Jasin in the south and Gurun in the west of Peninsular Malaysia, the
three photovoltaic solar parks cover more than 200 acres each.
Scatec Solar expects to invest about USD 60 million through preference shares
partly convertible to a 49% equity ownership in the projects. The investment
expects to provide long term stable cash flows and to meet Scatec Solar's
investment hurdle rates. The agreement with the Malaysian consortium includes
Scatec Solar acting in its well-known integrated role, including undertaking the
turnkey EPC for the projects.
"This is a landmark opportunity to bring our wide-ranging expertise to realize
the largest solar energy portfolio in South East Asia. For Scatec Solar and our
partners, this is a stepping stone to enter one of the most dynamic and fast
growing regions of the world'' said Raymond Carlsen, CEO of Scatec Solar.
Headquartered in Kuala Lumpur, ItraMAS, a Malaysian LED lighting and traffic
management and construction engineering company, is the lead sponsor of the
three solar projects and signed the PPA on behalf of the local consortium that
includes two other Malaysian companies, Maltech and Cam Lite.
CIMB, Malaysia's second largest commercial bank, has been appointed to arrange
the non-recourse project debt financing for the three projects. All development,
financing and project implementation preparatory activities are currently
underway to reach timely financial close with the construction expected to begin
immediately thereafter.
Welcoming the co-development of the projects by Scatec Solar, Choo Boo Lee, CEO
of ItraMAS said ''This is a significant achievement for Malaysia and the solar
industry in the region as these projects will help develop local supply chains
and uplift local communities''. Malaysia is already a major manufacturing hub
for Chinese solar energy equipment.
The three solar projects are expected to generate 285,000 MWh of electricity per
year. The clean solar electricity will avoid 210,000 tons of carbon emissions
per year, taking Malaysia closer to achieving its promised emission cuts under
the Paris Climate Agreement.
Scatec Solar is a leading developer and owner of large scale solar in Africa,
Europe, Middle East and the Americas. Over the last few weeks the company has
secured a 20 year PPA for 150 MW in Brazil and a 25 year PPA for a 40 MW solar
plant in Mozambique. With the announcement of the partnership in Malaysia,
Scatec Solar's project backlog now stands at 731 MW, and is well on track to
reach its target of having 1.3 - 1.5 GW in operation and under construction by
the end of 2018.
For further information, please contact:
Mr. Mikkel Tørud, CFO tel:
+47 976 99 144 mikkel.torud@scatecsolar.com
For Media:
Ms. Julie Hamre, Communications tel:
+47 920 20 854 julie.hamre@scatecsolar.com
About Scatec Solar
Scatec Solar is an integrated independent solar power producer, delivering
affordable, rapidly deployable and sustainable source of clean energy worldwide.
A long term player, Scatec Solar develops, builds, owns, operates and maintains
solar power plants, and already has an installation track record of close to
600 MW.
The company is producing electricity from 426 MW of solar power plants in the
Czech Republic, South Africa, Rwanda, Honduras, Jordan and the United States.
With an established global presence, the company is growing briskly with a
project backlog and pipeline of close to 1.6 GW under development in the
Americas, Africa, Asia and the Middle East. Scatec Solar is headquartered in
Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol 'SSO'