Utilities
Despite the urgent requirement for affordable and clean power to replace expensive thermal plants in Sub-Saharan Africa, solar PV, which has served as a competitive alternative for several years, still represents less than 5% of the installed capacity in the region to date. The Independent Power Producer (IPP) model is often inefficient, requiring complex legal and financial arrangements, as well as guarantees over 25 years.
For utilities, Release therefore offers numerous advantages compared to traditional models:
- Limited upfront investments: Our equipment is pre-financed, eliminating the need to secure financing before project commencement and spreading the financial burden over the lease duration.
- No requirement for sovereign guarantees: We do not demand sovereign guarantees to cover payments, reducing the overall financial commitment required from utilities or governments.
- Financial and operational predictability: We commit to delivering a complete product at the agreed price, ensuring financial predictability, with full performance guarantees.
- Operational flexibility: Our standardized and pre-assembled equipment enables quick and efficient deployment on-site. The modular nature of the solar PV and BESS units allows for scaling up or down based on power requirements during the lease.
- Utilities empowerment: We support utilities in enhancing their project management and operations and maintenance (O&M) capabilities.
Operations
Our operations in Maroua and Guider – Cameroon
Our latest utility-scale project in Cameroon has been operational since Q3 2022. These projects are situated in Guider and Maroua, with installed capacities of 17.8 MWp PV + 9.5 MWh Battery storage and 18 MWp PV + 9.5 MWh respectively. They are leased to the local utility (ENEO) and integrated into the Northern Cameroon Grid. Achieving First Power within 6 months of contract signing, the projects have bolstered ENEO’s service continuity in the North and Far North regions.
The projects have effectively reduced CO2 emissions by up to 600kg/MWh of energy supplied per site, totaling an annual reduction of 32,193 tons of CO2. Additionally, they have brought about a 90% reduction in fuel consumption between 2021 and 2023, resulting in savings of around 18 billion CFA francs.
Building on this success, Release has reached an agreement with ENEO in June 2024 for a second-phase project of similar size, with the aim of achieving COD within the next year.
Mining and Industrials
Reliable power supply is critical for mines and industries. Cost of electricity is also key. For customers that are dependent on HFO or diesel power generation either from grid or with offgrid self-generation, we can typically offset 50% of their fuel consumption. Apart from the immense savings, the customer will also enjoy CO2 emission reductions in the range of 1’600 tons CO2 per MWp PV installed per year.
It can be difficult to allocate capex for or commit long-term to a PV & BESS power plant, particularly in a context with uncertainty on life of mine or on potential future grid supply.
Release clears these hurdles for mining and industrial applications:
- No CAPEX: Customers can allocate available CAPEX to core business investments. In addition, as our equipment is pre-financed, there are no delays due to third-party financing and it allows for immediate deployment upon signing of the contract.
- Operational performance: We provide proven technology, have 24/7 monitoring services and monthly reporting services, provide spares and O&M training as well as carry out annual on-site maintenance & audits. This allows us to provide performance guarantees.
- Flexibility: Flexible solutions help mitigate uncertainty on project duration. Life of mine, change of ownership or of energy demand and available alternatives can necessitate change in installed capacity or project duration. Standardized and pre-assembled equipment enables quick and efficient deployment on-site. The modular and redeployable nature of the solar PV and BESS units allows for scaling up or down based on power requirements during the lease. We can also adjust duration of our lease contract.
- Financial and operational predictability: We deliver a complete product at the agreed price, ensuring financial predictability. Customers generate net savings immediately in the first year of operation.
Example of a mining project in West Africa
A gold mine located in West Africa operates through a network of open pits. The mine is operating its own HFO/diesel power plant 24/7. The average load of the mine is 8MW, and in addition to the high energy cost and challenging fuel supply chain, the current Life of Mine is set at 7 years. The gold mine embarked on a strategic initiative to hybridize its operations by integrating solar PV and battery energy storage into its energy mix:
Release by Scatec’s technical experts sized a PV and battery solution that would lead to maximum savings, based on the mine’s load profile and their cost of fuel. A 7-year lease contract was offered with an option to extend the contract in case of LoM extension. The lease contract includes supply, installation and commissioning of the PV and battery power plant, as well as performance guarantees.
Our 15 MWp PV + 8 MW / 16 MWh BESS electrical plant was delivered and commissioned in 38 weeks, generating savings of 10 million USD per annuum on fuel, avoiding CAPEX, and contributing to the mine’s environmental sustainability by avoiding the emission of 22,000 tons of CO2 per annum.