Author: kine

Release in Washington DC – first guarantee agreement signed for Chad

Last week Release CEO, Hans Olav Kvalvaag and SVP Utilities, Arnaud Gouet met with IFC and representatives from the Government of Chad in Washington DC, to sign the first guarantee agreement under the USD 65 million guarantee facility with the World Bank’s International Development Agency (IDA). 

 

The guarantee agreement enables the realisation of the 35 MW solar and 20 MWh battery project in N’djamena in Chad, a rental agreement between Release and Société Nationale d’Électricité du Tchad.

The USD 65 million guarantee facility in combination with the USD 100 million loan agreement announced last December, forms a larger partnership with IFC to provide a simpler, more affordable, and cleaner offering of power to African utilities. The partnership also strengthens risk mitigation for Release, allowing utilities to adopt renewable energy with less financial burden.

Starting with Chad, we are excited that the partnership with the World Bank group is in place and operational. We are now ready to efficiently deliver much needed, affordable, and reliable power generation based on solar and batteries across Africa. This partnership enables us to standardise a legal, technical, and financial solution that gives comfort and credibility, while mitigating risk for all stakeholderssays Hans Olav Kvalvaag, CEO at Release.

This collaboration underscores Release’s active role in deploying renewable energy across Africa, solidifying its position as a catalyst for sustainable power and economic growth in the region.

Release by Scatec extends solar plants in Cameroon by 28.6 MW solar and 19.2 MWh BESS

10 June 2024, Cameroon/Norway: Release by Scatec has entered into two new lease agreements with the national electricity company ENEO in Cameroon, expanding its existing solar and battery storage power plants in the country to 64.4 MW of solar and 38.2 MWh of batteries.

Release completed the already existing solar plants in Maroua and Guider in Cameroon (35.8 MW solar and 19 MWh BESS) in September 2023, and is now adding 28.6 MW of solar and 19.2 MWh of battery storage.  The Maroua and Guider solar power plants are based on the innovative Release solution of movable panels and batteries, which are deployed under a simple and flexible leasing contract. Release has available funding for these projects based on the capital raise completed last year when Climate Fund Managers came in as equity investor with 32% ownership stake.

“This extension is a testimony to the success of the initial projects and to the benefits provided by our innovative offering. By increasing the installed capacity in the country, we are reaffirming our collaboration with ENEO and our commitment to Cameroon as a key market for our solutions,” says Hans Olav Kvalvaag, CEO at Release.

“In addition to improving electricity supply in Cameroon and significantly reducing the cost and CO2 emissions from alternative generation based on diesel supply, these pioneering leasing contracts with ENEO are serving as a model for access to affordable clean energy for other countries and large energy consumers in the region. We have the funding available to support significant growth and expect to close and start implementing several additional projects from our pipeline in the coming months,” adds Kvalvaag,

When the extensions of the projects are completed, Release’s projects in totality will supply energy to about 200,000 households in Cameroon, according to ENEO estimates, generating an annual production of about 141.5 GWh of electricity. In combination with the storage capacity the installation will ensure stable supply of electricity also during peak hours.

“ENEO Cameroon has renewed its trust in its partner Release by Scatec to double the capacity of the solar power plants in Guider and Maroua. This move will enable Eneo to further secure power generation in the Northern regions while also improving service quality for households and the industrial sector in these regions. This new step towards more reliable and carbon-free energy is part of Eneo’s strategy, which is central to its continued efforts, under the auspices of the Government of Cameroon, to sustainably improve on the power available in Cameroon,” according to Amine Homman Ludiye, CEO of ENEO Cameroon.

“Our successful partnership with Release by Scatec has greatly benefited the local population in northern Cameroon by eliminating blackouts. This new project will further reduce our dependency on diesel and save the government millions of dollars in fuel costs,” says H.E. Gaston Eloundou Essomba, Minister of Water and Energy, Republic of Cameroon.

The projects were originally developed in partnership with Izuba Energy and Sphinx Energy.

Contact:
Hans Olav Kvalvaag, CEO Release, tel: +47 90 17 13 18, hans.olav.kvalvaag@scatec.com

About Release
Designed to overcome financial and technical barriers associated with adopting solar energy, Release is a flexible leasing agreement of pre-assembled solar PV and battery equipment to deliver a low cost, clean, and reliable power solution. Release is owned by Scatec ASA (68%) and Climate Investor One (32%), an impact investment fund managed by Climate Fund Managers.

Release by Scatec partners with IFC for clean and affordable power to Africa

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

 

For images, please see Release image gallery

Flexible solar leasing solution “Release by Scatec” closes USD 102 million capital financing round

27 October 2023, Oslo: Release by Scatec (“Release”) today closed the previously announced USD 102 million (NOK 1.1 billion) transaction with Climate Fund Managers (“CFM”). The funds will be used to further accelerate its growth ambitions as a separate platform. Release was established by Scatec ASA (“Scatec”) in 2019 to offer a flexible and mobile leasing solution of pre-assembled and modular solar and battery equipment for the mining and utilities market.

CFM is 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. The company invested in Release via its Climate Investor One (CIO) fund; a blended finance vehicle focused on renewable energy infrastructure in emerging markets. As previously communicated, CFM will contribute USD 55 million in equity for a 32% stake in Release. Scatec will retain the majority shareholding of 68%. CFM will also provide shareholder loans totalling USD 47 million, part of which will be on concessional terms.

“We welcome Climate Fund Managers as a strategic partner to fuel the solid growth journey of the Release platform. With this collaboration, we are not only raising funds; we are sharing the future of renewable energy solutions. Release is offering a unique solution in a rapidly growing market segment that requires a different business model than Scatec’s larger scale project business,” says Scatec CEO, Terje Pilskog, who is also the Chair of Release.  “We are excited to reach this key strategic milestone for Release. It is testimony to Release’s unique business model and Scatec’s ability to attract top climate-oriented fund managers on a mission to invest in value accretive projects in emerging economies.”

Release represents Scatec’s innovative approach to distributed generation solar PV and Battery Energy Storage Systems (BESS) for projects beginning from 5MWp blocks, matching a need for delivering simple and on-demand renewable energy solutions. This modular solution comprises pre-assembled and containerised movable trackers and storage units. The equipment is pre-funded and deployed through a straightforward and adaptable leasing agreement, lasting at least 5 years and up to 15 years, akin to leasing a car. The mobility of the equipment enables Release to assess its useful lifespan, enabling the company to provide cost-effective short-term contracts, even for 5-year leases. This flexibility ensures competitive pricing while maintaining high-quality service and technology.

Release is experiencing good traction in the market, particularly towards African utilities. It has projects in operation and under construction in Cameroon, South-Africa, Mexico, and South-Sudan with a total capacity of 47 MW solar PV and 20 MWh of battery storage and has additional contracts for 35 MW solar PV and 20 MWh of storage in Chad, in addition to maturing its advanced pipeline. Release intends to replicate its rapid deployment model to address shortfalls in local grid power supplies throughout the region.

“Our blended finance model facilitated the integration of impact finance into the deal structure, which Release will be able to leverage to improve its cost structure for its battery and grid connection solutions, allowing Release to offer even more competitive pricing and better value to its clients. We are delighted to support the Release team as they roll-out their critical climate technology across Africa, helping significantly reduce the emissions of the mining and utility sectors,” says Climate Fund Manager’s Darron Johnson, Head of Africa Investments

Release will now be accounted for as a joint venture investment in the group accounts of Scatec, generating an accounting gain of approximately USD 40 million in the consolidated financials at closing. There will be no impact on the proportionate financials from the transaction.

Rand Merchant Bank (“RMB”), a division of First Rand Bank Limited, acted as the sole financial advisor to Scatec on the transaction.

 

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

Release by Scatec to provide reliable and affordable clean power in Central Africa – 36 MW solar and 19 MWh storage for ENEO in Cameroon and 7.7 MW solar in Chad

13 December 2021: Release by Scatec has entered into a lease agreement with electricity company ENEO in Cameroon to deliver two hybrid solar and storage plants totalling 36 MW solar and 20 MW/19 MWh storage. The plants will supply low cost, clean and reliable electricity in Maroua and Guider in the Grand-North of Cameroon. IFC is partnering with Release to realise these redeployable projects.

Release by Scatec will further install 7.7 MWp solar in Chad to supply clean, renewable energy to five smaller grids owned by ZIZ Energie. FMO and Energy Access Ventures back the Chad project.

Cameroon

“We are pleased to enter into this agreement with ENEO, which further fuels our journey to make renewable energy more accessible and affordable across growth markets. The deal marks our entry into the Cameroonian market, and we are proud to contribute with a cost-efficient and immediate solution to a cleaner and more stable electricity supply in a region suffering from power shortages caused by droughts limiting the supply of hydropower,” says Raymond Carlsen, CEO at Scatec.

Release by Scatec is a pre-assembled, modular and redeployable solar power and storage system, allowing for fast and easy power generation. ENEO and Release by Scatec have entered into a flexible contract term that enables ENEO to coordinate the generation capacity with their needs going forward.

IFC will contribute 10-20% of the project costs of the Cameroon project and will further support the development of Release by Scatec through project development activities and future financing.

“Access to sustainable, reliable and affordable power is essential to economic recovery and growth. IFC is proud to partner with Scatec’s Release to help bridge the power gap in Cameroon through a unique solution that enables solar power systems to be quickly deployed to help meet the electricity needs of today while paving the way for more competitive, cleaner and long-term energy sector sustainability in Cameroon. This partnership fits with the World Bank Group’s mandate to align its work with the Paris Agreement goals to help our private and public sector partners meet global climate targets, says Sylvain Kakou, IFC’s Country Manager for Central Africa.

The first power is expected to be delivered around year end 2021, and the remaining will be delivered in phases, where the full project is expected to be completed by mid-2022.

The pay-back time for Scatec’s investment in the project is in line with previous guidance around the Release business concept.

The structure of this project is unique as it ensures supply of clean and reliable energy for governments and utilities, without sovereign guarantee requirements or parliamentary approvals. We believe this model will be a sound solution for many utilities in Africa struggling with power shortages and grid instabilities,” says Hans Olav Kvalvaag, SVP Release by Scatec.


Chad

In Chad, Release by Scatec is installing 7.7 MWp of solar plant capacity  across the country, which will support clean energy access to 300,000 people across 5 provincial cities and their newly built decentralised “metro-grids” developed and operated by local private utility ZIZ Energie. ZIZ Energie is backed by the Dutch FMO and Energy Access Ventures and has recently received funding from the Development Bank of Central African States (BDEAC), to build grid infrastructure and connections to provide access to electricity for households and industries in the proximity. Installation of the power plants is expected to be finished during 2022.

The projects in Cameroon and Chad add to Release by Scatec’s ambitions of providing cost-competitive, high-quality and redeployable renewable energy solutions with a unique financing model to countries and consumers that are hit hardest by the impact of climate change.

For further information, please contact:

Stian Tvede Karlsen, Communications Manager, tel: +47 920 67 460, stian.karlsen@scatec.com

 

About Scatec ASA
Scatec is a leading renewable power producer, delivering affordable and clean energy worldwide. As a long- term player, Scatec develops, builds, owns and operates solar, wind and hydro power plants and storage solutions. In the first half of 2021, Scatec will have a total of 3.3 GW in operation on four continents and more than 500 employees. The company is targeting 15 GW capacity in operation or under construction by the end of 2025. Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SCATC’. To learn more about Release by Scatec, visit www.releasesolar.com.

 

About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.

Release by Scatec signs lease agreement with a mobile PV plant for ENGIE to decarbonise hydrogen production for Anglo American at Mogalakwena

6 September 2021: Release by Scatec has entered a 2-year lease agreement with ENGIE to provide a mobile plug & play solar PV plant. The mobile unit will provide solar energy for ENGIE’s hydrogen production plant located at the Anglo American Platinum – Mogalakwena Mine in Limpopo, South Africa.

“We are proud to support ENGIE and Anglo American in this important project. This is Release by Scatec’s first involvement with powering hydrogen production, and further proves the potential for pre-assembled and containerised solar PV in the mining industry”, says Hans Olav Kvalvaag, SVP Release at Scatec.

This is the first involvement in powering hydrogen production for Scatec as a company, and will be delivered by its scalable power solution, Release. The plant will produce 616kWp of solar energy.

“The agreement is another important milestone for us in delivering reliable and renewable power to the mining industry, but also as a way of powering hydrogen production. The Release model is gaining traction, and with its flexibility both with regards to contract term and capacity, has great potential in mining”, Kvalvaag continues.

The new plant will be a model for how to decarbonise hydrogen production in the mining industry for the future. Release by Scatec has great expectations for the project and its potential to be rolled out on a greater scale.

For further information, please contact:

Stian Tvede Karlsen, Communications Manager
Tel: +47 920 67 460, email: stian.karlsen@scatec.com

About Release by Scatec:

Release designs, finances and installs scalable solar power plants and battery storage and leases out the equipment on short- or long-term contracts.  We guarantee equipment performance, provide 24/7 monitoring and operation and maintenance support, and train local resources to perform regular maintenance tasks.

Release by Scatec signs flexible lease agreement with Torex Gold for 8.5 MW solar plant

22 April 2021: Scatec has entered into a lease agreement with mining company Torex Gold for a 8.5 MW solar plant to provide renewable power to the Morelos Media Luna and El Limon Guajes projects in the Guerrero Gold belt 180 km southwest of Mexico City.

“We are very pleased to have entered into this agreement with Torex Gold. The agreement is a landmark deal for “Release by Scatec”, our flexible solution for pre-assembled and containerised solar PV delivering a low cost, clean, and reliable power solution”, says Hans Olav Kvalvaag, SVP Release at Scatec.

The initial contract term is ten years with the possibility of extension and options for buy-out starting after the expiry of year 3. The solar plant can at any time be expanded, including adding battery storage to further increase the use of renewable energy. It can also be moved to a new location if needed. The new solar plant is estimated to be completed in fourth quarter 2021 subject to permitting approvals.

“The agreement is an important milestone for us in delivering reliable and renewable power to the mining industry. We have had a good cooperation with Torex in designing the solution to adapt to challenging topography. The Release model is designed to provide flexibility both with regards to contract term and capacity, and thus has great potential in mining”, Kvalvaag continues.

The new plant is expected to reduce Torex’ Scope 2 greenhouse emissions by up to 8.6% using 2019 as the baseline year and is Torex’ first major foray into renewable energy at its operations.

“As is often the case with innovative and sustainable solutions, in addition to the environmental benefits the solar plant will provide, there will also be economic upside and benefits to the local communities. Factoring in the installed cost of the plant together with the ongoing lease fee, we expect to save approximately USD 1 million per year in energy costs over a 20-year lease period, with full payback of the solar plant realised within approximately 7 years”, says Jody Kuzenko, President & CEO of Torex.

About SCATEC ASA

Scatec is a leading renewable power producer, delivering affordable and clean energy worldwide. As a long- term player, Scatec develops, builds, owns and operates solar, wind and hydro power plants and storage solutions. In the first half of 2021, Scatec will have a total of 3.3 GW in operation on four continents and more than 500 employees. The company is targeting 15 GW capacity in operation or under construction by the end of 2025. Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SCATC’. To learn more about Scatec, visit www.scatec.com or connect with us on Linkedin.  

About Torex GOLD RESOURCES INC.

Torex is an intermediate gold producer based in Canada, engaged in the exploration, development, and operation of its 100% owned Morelos Gold Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometers southwest of Mexico City.  The Company’s principal assets are the El Limón Guajes mining complex (“ELG” or the “ELG Mine Complex”) comprising the El Limón, Guajes and El Limón Sur open pits, the El Limón Guajes underground mine including zones referred to as Sub-Sill and El Limón Deep (“ELD”), and the processing plant and related infrastructure, which commenced commercial production as of April 1, 2016, and the Media Luna deposit, which is an advanced stage development project, and for which the Company issued an updated preliminary economic assessment in September 2018.  The property remains 75% unexplored.

 

For further information, please contact:
Ingrid Aarsnes, VP Communication & IR
Tel: +47 950 38 364, Ingrid.aarsnes@scatec.com

The Release offering included in Scatec ASA’s ISO certification

Scatec ASA is proud to announce that our ISO certification has been extended to include our Release offering. In particular, our ISO certification, i.e. ISO 9001, ISO 14001, & ISO 45001, has been extended to include ‘Planning, design, engineering, construction, leasing, operation and maintenance of solar plant installations and storage solutions globally.’

About Release – making solar simple

Release is a fully scalable solar power solution offering industrial players reliable, clean and cost- efficient containerised solar power through flexible leasing agreements. The company designs, finances and installs scalable solar power plants and battery storage, securely integrated with existing power infrastructure. Focusing on medium and large energy consumers in emerging markets, we use our experience, competence and global presence to make reliable solar power available – reducing electricity costs and increase energy independence. Visit www.releasesolar.com for more information, or follow us on Facebook for updates.

Release is owned and managed by Scatec, a leading Norwegian renewable power producer. Scatec Solar develops, builds, owns, operates and maintains power plants and has a total of 1.9 GW in operation and under construction on four continents.

Release presenting at virtual conferences 8 and 9 December

Energy and Mines World Congress – Towards Zero-Emissions Mining, 8-9 December

This year’s virtual congress will showcase the mining companies, energy experts, and low-carbon solutions. Our Senior Project Developer, New Ventures, Øydis Gadeholt will present Release by Scatec – The flexible, 5-year solar contract on 8 December on the main stage. As one of the exhibitors, we welcome you to visit our digital booth during the congress, here.

Read more about the congress here


Desert to Power – Africa Energy Market Place:
Unlocking the Solar Potential of the G5 Sahel Countries

Director of Business Development, West Africa, Arnaud Gouet will present Release in the roundtable session Innovative technologies to accelerate solar projects, to discuss the opportunities and the needs for the Sahel region – where electricity access is considered as the main issue.  The conference is part of the Desert to Power (DtP) initiative by the African Development Bank. The session takes place on 9 December at 10:30 AM CET.


About Release – making solar simple

Release is a fully scalable solar power solution offering industrial players reliable, clean and cost- efficient containerised solar power through flexible leasing agreements. The company designs, finances and installs scalable solar power plants and battery storage, securely integrated with existing power infrastructure. Focusing on medium and large energy consumers in emerging markets, we use our experience, competence and global presence to make reliable solar power available – reducing electricity costs and increase energy independence. Visit www.releasesolar.com for more information, or follow us on Facebook for updates.

Release is owned and managed by Scatec, a leading Norwegian renewable power producer. Scatec Solar develops, builds, owns, operates and maintains power plants and has a total of 1.9 GW in operation and under construction on four continents.

Virtual site visit – Release pilot plant

Since late January 2020, our 45kWh pilot project just outside Stellenbosch, South Africa has been operational. The site is a great opportunity for our customers and partners to experience the Release solution live, though due to COVID-19 restrictions these in-person visits have been put on hold. Therefore we have decided to develop a virtual site visit, where our visitors can experience the Release pilot project from their own homes.

We hope you enjoy the visit.

Release Pilot – Virtual Site Tour from Scatec Solar on Vimeo.