Nordic independent power producer (IPP) Scatec has secured US$102 million in funding to support its Release by Scatec (Release) platform, a flexible leasing solution for pre-assembled solar modules and battery storage for the mining and utilities market.
The money was provided by Climate Fund Managers (CFM), a climate change-focused investment manager run by FMO, the Dutch Development Bank, and South Africa’s Sanlam Infraworks. US$55 million came from CFM’s Climate Investor One (CIO) fund which focuses on renewables in emerging markets and the remaining US$47 million is provided in shareholder loans.
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Release targets emerging markets and said that it has seen good traction amongst African utilities. Across Cameroon, South Sudan, South Africa and Mexico the company has 47MW of PV and 20MWh of storage operational or under construction, with a further 35MW/20MWh of projects under contract in Chad.
The company provides pre-assembled solar PV and storage equipment to medium and large consumers in emerging markets, which it says broadens the scope of solar deployment and takes down financial and technical barriers.
“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,” said Scatec CEO and Release chair Terje Pilskog.
“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.”
Last month Scatec closed financing on 273MW of South African PV, expanding its presence in one of its major markets. Earlier in the year, in February, the company sold its 42% minority stake in the 258MW Upington solar plant in South Africa.