Norwegian developer Scatec is scaling back in sub-Saharan Africa, selling stakes in three South African renewable projects. This follows its recent sale of a plant in Rwanda and a prior divestment in Mozambique.
In the last week of July 2024, Scatec divested its indirect interest in hydropower plants in Uganda, Malawi, and on the border of Rwanda, the DRC, and Burundi. The renewable energy provider’s ongoing sale of part of its equity in Kalkbult and Linde solar power plants in SA’s Northern Cape and Dreunberg plant in the Eastern Cape province, with a total capacity of 190 MW, follows its relinquishment of its entire interest and exit from operations, maintenance, and asset management in the 8.5 MW, grid-connected Rwamagana solar plant in Rwanda. Scatec’s sell-offs in Uganda, Malawi, the DRC, and Burundi include, precisely, its operating stake in the 255 MW Bujagali hydropower plant in Uganda, a development portfolio consisting of the 361 MW Mpatamanga in Malawi, and the 206 MW Ruzizi III at the border of Rwanda, the DRC, and Burundi.
“We continue to deliver on our strategy to consolidate our portfolio through divestment of assets in non-core markets and recycling capital into new investments in renewable energy,” Scatec says in a release. Scatec’s ongoing sale of equity stakes in three power plants in South Africa is a transaction worth $50 million. The company currently holds an economic interest of approximately 46% in the Kalkbult and 44% in the Linde and Dreunberg solar power plants.
The deal will be conducted through a two-step process, whereby Scatec will sell down to approximately 13% in Kalkbult and 12% in Linde and Dreunberg. For the sale, Scatec has signed an agreement with Greenstreet 1 Proprietary Limited, a subsidiary of STANLIB Infrastructure Fund II, managed by STANLIB Asset Management Proprietary Limited. The first phase of the transaction is estimated to close in the second half of 2024, and the second phase in the first half of 2025. The deal’s wrap-up is subject to customary consents, including lender, shareholder, and regulatory authority approvals.
The first Scactec’s ongoing divestment in sub-Saharan Africa, a region in which it had played a key role in developing energy projects over the last 12 years, was the sale of its 52.5% equity share in the 40 MW Mocuba solar power plant in Mozambique to Globeleq, the British power developer. Scatec realized $8.5 million in that July 2023 transaction.
Scatec is shifting its focus to Egypt as it exits Sub-Saharan Africa. Over the past six months, it has secured deals for a 1,000 MW solar project with 200 MW of battery storage and land for a 5,000 MW wind farm in Egypt. The company is also planning significant investments in hydrogen projects there, with a senior vice president specifically dedicated to this area. While Scatec has executive vice presidents for Asia and Europe, it has no equivalent leadership focused on sub-Saharan Africa.
