Scatec ramps up PV project development after earnings dip

Scatec has started construction of solar PV plants in South Africa, Brazil and Pakistan during Q2 2022. Image: Scatec.

Independent power producer (IPP) Scatec has ramped up project development activity after witnessing its earnings fall by nearly 14% year-on-year.

Higher power sales activities in the Philippines have partially offset lower revenues in Ukraine which had the firm’s opening quarter results.

The IPP recorded revenues of NOK1,130 billion (US$115.16 million) in the second quarter of 2022, up from NOK1,007 million in Q2 2021. But earnings fell by nearly 14% from NOK601 to NOK517 million (US$52.53 million).

In the second quarter Scatec ramped up solar project development as it started construction of a 540MW solar PV co-located with 1,1100MWh battery storage in South Africa, a 531MW solar plant in Brazil and progressed a 150MW solar plant in Pakistan.

The company’s backlog has decreased from 1.7GW in Q1 2022 to less than 1GW at the end of Q2, with its current portfolio consisting of 3.3GW of renewable assets in operation and a pipeline of 14.7GW, up 2.5GW from Q2 2021.

Furthermore, the IPP’s power-to-X activities have progressed, Scatec having now moved its 100MW electrolyser green hydrogen project in Egypt into backlog. The project, which is set to have a production capacity of one million tonnes of green ammonia annually, will be powered by 260MW of solar and wind power.

Terje Pilskog, CEO at Scatec, said: “Going forward, our top priority is to ramp up construction activities, optimise returns of our backlog projects and continue to mature our pipeline.”

Scatec reviewed its guidance for 2022 with an increased EBITDA of NOK2.5-2.7 billion, up NOK150 million, reflecting currency exchange rates as per the end of the second quarter.

The IPP expects power production to reach 1,060-1,160GWh during Q3 2022, with a 25% above average production in the Philippines in the next three months.

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