The International Finance Corporation (IFC) has announced the signing of a $100 million loan agreement with the Norwegian solar energy producer Scatec Solar.
Half of this financing comes from IFC’s own account, and the other half is from blended finance provided by the institution’s partners. A risk-sharing mechanism of $65 million will also be granted to Scatec Solar to ensure payments from counterparts leasing solar equipment and batteries.
Through this financial package consisting of loans and guarantees, the Norwegian company will develop and lease solar energy installations and equipment to African governments and public services. The Oslo Stock Exchange-listed energy producer will initially deploy in Chad, where a solar battery leasing contract has already been concluded with the authorities, adding 35 MW of electricity to the national grid.
A second operating project is announced in northern Cameroon for the supply of solar energy. Discussions on the extension of these projects are ongoing with the authorities of both countries, according to Scatec. And deployment will be done through its subsidiary release.
The Norwegian company hopes to meet the growing demand for electricity in Chad, where only 11% of the population has access to electricity, and in Cameroon, where electricity supply is irregular, with a connection rate of 65%.
Co-developed by IFC and Scatec Solar, Release announces that it will explore new expansion opportunities in Cameroon, Liberia, and the rest of West and Central Africa in the coming months.
Sarvesh Suri, IFC’s Regional Industry Director for Infrastructure and Natural Resources in Africa, expressed the ambition to implement this scalable solution in collaboration with Release in multiple countries across sub-Saharan Africa within a short timeframe. The goal is to enable more people to enjoy the economic benefits associated with dependable and affordable access to electricity.
