13 December 2023: Release by Scatec (Release), has signed a USD 100 million loan
agreement with the World Bank's International Finance Corporation (IFC). The
loan agreement is part of a larger partnership to provide a simpler, more
affordable, and cleaner offering of power to African utilities, which also
includes a USD 65 million guarantee facility to support the payment obligations
of Release's customers. The objective is to replace costly diesel and expand
electrification in the region.
Release operates on a unique leasing model, providing flexible short- or long-
term contracts for the mining and utilities market, primarily in Africa, based
on modular, movable and redeployable equipment.
IFC is the largest global development institution renowned for its instrumental
role in supporting private sector development, and the loan from IFC will
provide funding on a portfolio level for Release's further development and
installation of assets to be leased to African utilities.
The purpose of the guarantee facility is to guarantee payments to Release from
the counterparties leasing the solar and battery equipment. The structure
provides risk mitigation for Release while allowing African utilities and
governments to secure affordable renewable energy from solar and batteries,
without the financial commitment required for the conventional infrastructure
projects. The partnership with IFC will thereby represent a significant catalyst
for further growth of the Release platform.
The first project where the combined project loan and guarantee structure will
be applied is for a 35 MW solar and 20 MWh battery project in N'djamena in Chad,
where a lease contract has already been signed. Release's existing and operating
projects in Northern Cameroon of 36 MW of solar PV and 20 MWh of batteries will
also form part of the portfolio financing and discussions on extending the
capacity of these projects are currently ongoing with the utility.
"This highly innovative solution enables countries to deploy solar power
projects quickly, allowing African countries to swiftly ramp up to meet rising
energy demand with clean power solutions," said Sarvesh Suri, IFC's Regional
Industry Director for Infrastructure and Natural Resources, Africa. "Our
ambition is to deploy this replicable solution, in partnership with Release in
multiple countries across sub-Saharan Africa within a short timeframe, allowing
more people to benefit from the economic growth that comes with reliable,
affordable access to electricity."
"I am delighted that, through this partnership between Scatec and IFC, Chad has
been chosen as the first country to benefit from a solar power plant to support
the government's efforts to meet the energy access needs of our populations,"
said Alixe Naïmbaye, Minister of Hydrocarbons and Energy of Chad. "In addition,
the liquidity guarantee facility granted by the World Bank to Société Nationale
d'Electricité underlines the strong commitment of the World Bank Group to
facilitating partnerships with private investors."
"We are excited to secure the partnership with IFC for our innovative solar
leasing solution Release. IFC's support is testimony to the solid business model
of Release, the general demand and need for such an innovative solution in the
market and our proven track record in developing renewable energy solutions,"
says Scatec CEO, Terje Pilskog, who is also Chair of Release.
"The innovative approach of Release follows a dynamic rolling delivery model of
build, connect, and deliver. Looking ahead, Release is actively exploring
additional opportunities in Cameroon, Liberia, and the rest of West- and
Central-Africa, reinforcing its commitment to advancing renewable energy
solutions across the African continent and other select markets," says Release
CEO Hans Olav Kvalvaag.
This significant step comes after Release recently raised USD 102 million in
funding from Climate Investor One, a fund managed by Climate Fund Managers, a
leading climate-centric blended finance fund manager backed by FMO, the Dutch
Development Bank, and Sanlam Infraworks, part of the Sanlam Group of South
Africa.
For further information, please contact:
For analysts and investors: Andreas Austrell, VP Investor Relations, tel:
+47 974 38 686, andreas.austrell@scatec.com
For media: Meera Bhatia, SVP Communications & Government Affairs, tel:
+47 468 449 59, meera.bhatia@scatec.com (mailto:meera.bhatia@scatec.com)
For images, please see Release image gallery (https://releasesolar.com/news-
downloads/)
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 4.3 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
(https://scatec.com/) or connect with us on LinkedIn
(https://www.linkedin.com/company/scatec).
About Release
Release is a modular and movable solar PV and Battery Energy Storage offering
"energy-as-a-service". The equipment is pre-financed and deployed under a simple
and flexible leasing contract. The mobility of the equipment enables Release to
assess its useful lifespan, enabling the company to provide cost-effective
short-term contracts. Release is gaining momentum in the market and has projects
in operation and under construction in Cameroon, South Africa, Mexico, and South
Sudan, boasting a combined capacity of 47 MW of solar PV and 20 MWh of battery
storage.
Release is owned 68% by Scatec and 32% by Climate Investor One, managed by CFM.
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act