Scatec has unveiled a NOK 100 billion (US$11.7 billion) plan that will see the company expand its renewables portfolio to 15GW over the next four years.
The Norwegian solar developer and independent power producer will aim to add 12GW of new clean energy capacity by the end of 2025, more than 5GW of which will be PV.
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This year will see the company increase its installed renewables capacity from the current 3.3GW level to 5.9GW by the end 2021, driven by the delivery of large-scale solar projects in India, Brazil, Tunisia, South Africa and Pakistan.
In the past two years, Scatec has expanded its global footprint to 35 countries, increased its backlog and pipeline of projects to 11.9GW and acquired hydropower developer SN Power.
“In line with our broadened strategy, we are developing renewable energy solutions and combining solar, wind, hydropower and storage to the benefit of our growing customer base of state utilities and large energy consumers,” said Raymond Carlsen, Scatec CEO.
Between 15% and 20% of investments as part of the expansion plan will be funded by Scatec equity. The company said solid long term cash flows from operating power plants and margins from the development and construction of new projects are expected to fund a major part of its equity investments.
Last year, Scatec and SN Power delivered a combined EBITDA of NOK 2.5 billion (US$292 million), up 59% on Scatec’s figure from 2019. The company is this year targeting a power production volume of 3,500-3,700GWh, an increase of 20% on last year.
Scatec also provided an update on its efforts to colocate floating PV with existing hydropower plants from SN Power. In total, the firm’s operating and under development hydropower assets are said to have 3GW of floating PV potential. The company will focus on Asia to grow its floating PV portfolio, with plans in place to install a 150MW project at a reservoir in the Philippines.
Scatec highlighted four markets – South Africa, Vietnam, Brazil and India – where it has a significant pipeline that will help it reach the 15GW target by the end of 2025.
After completing South Africa’s largest solar project last year, the company’s renewables pipeline in the country now stands at 2,250MW, including 14 PV plants. In India, meanwhile, the firm is planning to participate in future solar, wind and hybrid tenders, adding to its current 900MW pipeline in the country.