The two companies have partnered with regard to four solar PV projects in Africa with a total capacity of 200MW. Three of these projects are in South Africa with the fourth being in Rwanda. The agreement is a formal confirmation of existing partnership that will provide a framework for collaborative project development and joint investment in which both companies will jointly realise projects in all the countries under Norfund’s mandate.
“We enter the partnership with Norfund with great expectations” said Raymond Carlsen, CEO of Scatec Solar. “Our common objective is to contribute to the increased implementation of renewable energy in Sub-Saharan Africa, and the project- to-project cooperation we have had so far has proved very successful. Long term financing is the key enabler to any solar project and will reduce the risk in all phases of the project execution. When Norfund invests in our projects, their backing from the Norwegian Government combined with the company's excellent standing in the market will attract other investors as well. With the combined efforts of our two companies, we expect to realize more projects and a faster execution of each.”
Norfund has extensive experience from successful investments in developing countries and will provide long term capital, an extensive network in the Sub-Sahara regions as well as experience and competence from investing in this region. Scatec Solar has a proven track record in the execution and management of solar PV projects. The company will provide world class solar PV competence, project development and executions skills.
“This new agreement provides a solid foundation for more such projects in the future” said Kjell Roland, CEO of Norfund. “Norfund needs strong industrial partners like Scatec Solar in order to contribute to a sustainable development in poor countries. Our objective is to increase our investments and this type of long-term cooperation is a prerequisite for us to do so in a good and effective way.”
Scatec Solar will hod 70 percent of the joint investment company with Norfund holding the remaining 30 percent. Investments will be made on a consensus basis in projects the partners develop together and which meets the required return on capital employed.