We seek project opportunities globally where there is a strong rationale for solar and the integrated business model creates competitive advantage
In South Africa the 'IPP Procurement Programme' was established in 2011, with a target of installing 3.7 GW of renewable energy generation capacity over the next few years.
Scatec Solar was an early mover and entered the South African market in 2010. We have been awarded three solar plant projects with a total capacity of 190 MW under the REIPPP program that are now in operation. In April 2015 Scatec Solar was awarded additional 258 MW under the REIPPP program to be realized in 2017. Scatec Solar will operate the solar plants for at least 20 years.Read more
South Africa has experienced electricity shortages for years. With coal as the primary electricity source historically, the country has set out a ambition target where the majority of new power generation capacity come from renewables and nuclear. The renewable energy program launched in 2011 has accelerated the developmant of renewables and the government is emphasing that construction of the solar power plants shall be done using local labor and professionals.
A generous support scheme for solar led to very strong growth in installations in 2009-2011. In the same period Scatec Solar developed and built four utility scale solar plants in the country.
Scatec Solar entered the Czech market in 2008 and developed and built four solar power plants in 2009 and 2010. The plants have a total capacity of 20 MW and the power is sold to the local utilities under 25 years Feed-in-Tariff arrangements.
A generous support scheme created a strong boom in the Czech solar market in the period 2009 to 2011. As consequence the Czech government retroactively established a revenues levy on renewable energy plants, and from early 2014 removed the Feed-in-Tariff for large scale solar projects. We therefor see limited growth opportunities in this market in the near term.
With limited power generation capacity, the Rwanda Government has introduced an ambitious plan to give 50 percent of the population access to electricity, and lift total installed capacity from 110 MW to 560 MW by 2017. Renewable energy is expected to be important in realizing this ambition.
Scatec Solar was introduced to the first large scale solar project in Rwanda through its partner Norfund in 2013. The 8.5 MW project was brought to financial close in a few months and the plant started operation in July 2014.
While the current market is small, Rwanda is a country that is showing strong economic growth as they continue to focus on ease of doing business to attract foreign investment. This creates a need to add significant generation capacity, reflected by the goal of adding more than 400 MW over the next years. Solar power is attractive as Rwanda relies heavily on diesel generation, which is considerably more expensive than the cost of solar.
96 percent of Jordan’s energy needs comes from imported oil and natural gas from neighboring Arab countries. The National Energy Strategy for 2007-2020 has a target to increase domestic energy supply from 4 percent to 40 percent.
Scatec Solar entered Jordan in 2012 through a development partner to be in position for the upcoming solar energy tender program. In the first quarter 2014, Scatec Solar signed a 20 year power purchase agreement with the Jordanian power company NEPCO for a 10 MW solar plant.
In 2010, the government launched the Renewable Energy and Energy Efficiency Law, allowing investors to identify and develop renewable projects on their own and propose these to the Ministry of Energy and Mineral Resources. The first phase of direct tenders for solar was launched in 2012, and in March 2014 PPAs were signed with nine developers for the construction of 200 MW. Electricity produced under these contracts will be sold at a fixed price over the next 20 years.
Honduras is currently heavily dependent on diesel power as a source of energy generation, but the country aims to make renewable energy sources predominate to their energy mix. By 2022, the National Plan states that 60 percent of domestic demand will be supplied from renewable sources, where solar energy can play a significant role.
In the third quarter 2014, Scatec Solar entered the solar market in Honduras through a partnership with a local project developer, PEMSA, and Norfund/KLP to build the 60 MW solar power plant, Agua Fria. A 20-year power purchase agreement has been signed with the National Electricity Company (ENEE).
Several incentives for solar energy projects have recently been implemented in Honduras that successfully have promoted the development of solar projects in the country. In 2014, the Honduran Congress approved PPAs totalling about 600 MW with special energy price incentives built into the PPA combined with sovereign guarantees. By ratifying these guarantees, the Honduran government can financially guarantee payments of the National Electricity Company (ENEE). ENEE is the dominating national utility owning 35% of the total generation capacity in Honduras, which amounts to about 1 700 MW.
Brazil is targeting to further expand its Renewable Energy Program. Power Purchase Agreements have already been awarded to wind power projects totalling nearly 12 GW. Over the past one and a half years, approximately 3 GW of solar projects have been awarded in three consecutive utility scale solar auctions. The government plans to award another 7 GW by 2024.
Scatec Solar has signed an agreement with the Brazilian company Kroma Energia Ltda. and its partners ("Kroma"), securing four PV plants totalling 162 MW (DC) co-located in the state of Ceará in Brazil.
Brazil’s Ministry of Mines and Energy aim to reach a capacity of 7 GW of solar PV by 2024. The solar market in Brazil has significant long-term potential, and Scatec Solar is well positioned to take part in the development of this market.
More than half of the 300 million population in the West African countries are without access to electricity. The region is experiencing strong economic growth and solar is an attractive energy source based on competitice cost and speed of execution.
Scatec Solar is a pioneer developer of solar power across the West African region, and the company has built a significant Project pipeline in Mali, Ghana, Burkina Faso, Ivory Coast and Senegal since 2010. Scatec Solar entered a co-development partnership with IFC Infraventures covering large-scale solar development in for the region.
The West African region copes with serious energy security and climate change concerns, primarily due to the huge dependence of expensive and polluting fossil fuels. Despite being in its infancy, the West African renewable energy market is emerging with a very promising potential. The ECREEE target 2 425 MW of renewable energy by in the 2020 of which 686 MW of PV in the WAPP countries (excl. Nigeria).
Malaysia is experiencing fast-growing electricity demand and the Government has set a target for renewable energy to reach 11% of the country's total energy mix by 2020.
Scatec Solar entered the Malaysian large-scale solar energy market by joining forces with a local ItraMAS-led consortium that has signed three 21-year Power Purchase Agreements (PPAs) with the country's largest electricity utility, Tenaga Nasional Berhad (TNB).
Malaysia has taken several steps to enhance clean energy deployment. One key initiative has been to adopt the renewable energy feed-in tariff (FiT) mechanism under the country’s 2011 Renewable Energy Act.
Egypt has committed to increase the share of renewables in the country’s power mix to 20% by 2022 and 37% by 2035.