Nordic independent power producer (IPP) Scatec has successfully secured $102 million in funding for its innovative Release by Scatec (Release) platform. The platform offers a flexible leasing solution for pre-assembled solar modules and battery storage, specifically catering to the mining and utilities market.
The funding comes from Climate Fund Managers (CFM), a renowned climate change-focused investment manager, which is a partnership between FMO, the Dutch Development Bank, and South Africa's Sanlam Infraworks. Of the total funding, $55 million was contributed by CFM's Climate Investor One (CIO) fund, which concentrates on renewable projects in emerging markets. The remaining $47 million was provided in the form of shareholder loans.
Release is designed to target emerging markets, with a particular focus on African utilities. The platform has already gained significant traction in regions like Cameroon, South Sudan, South Africa, and Mexico. Presently, Scatec boasts 47MW of PV and 20MWh of storage in operation or under construction. Additionally, they have 35MW/20MWh of projects under contract in Chad, indicating the platform's growing popularity in these markets.
The core objective of Release is to provide pre-assembled solar PV and storage equipment to medium and large consumers in emerging markets. By doing so, the platform aims to expand the scope of solar deployment while breaking down financial and technical barriers that hinder the adoption of renewable energy solutions.
Terje Pilskog, the CEO of Scatec and also the chair of Release, expressed his excitement about the funding deal, stating, “Today's transaction establishes Release as a strong and independent company while Scatec remains the main shareholder and offers services to support Release and drive synergies in the next phase of the company's development. Release is offering a unique renewable energy solution in a rapidly growing market segment that requires a different business model than Scatec's larger scale project business.”
Scatec has been making significant strides in its South African market presence. Last month, the company concluded financing for a massive 273MW South African PV project, further solidifying its position in this key market. Moreover, in February of the same year, Scatec sold its 42% minority stake in the 258MW Upington solar plant in South Africa.
With the new funding injection, Scatec's Release platform is expected to accelerate the adoption of solar and battery leasing solutions in emerging markets, ushering in a new era of renewable energy utilization for the mining and utilities sector.
