Scatec to invest US$950 million in renewables through 2027, adding 1.5GW capacity per year

Scatec has recorded an all-time high on its EBITDA during Q3 2022 with NOK850 million, due to high performance of its Philippines assets. Image: Scatec.

Independent power producer (IPP) Scatec plans to invest NOK10 billion (US$946 million) of equity into new renewable power plants through 2027.

The investment would correspond to adding on average 1.5GW of new renewable capacity every year.

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The Norwegian IPP will expand its presence in selected emerging markets such as South Africa, the Philippines, Brazil, Poland and Egypt.

Meanwhile, the company has increased its revenue in the third quarter of 2022 with NOK1,818 million (US$171.4 million) made, up 52% from Q3 2021 when it recorded revenues of NOK1,196 million.

The increased financial performance was due to its hydropower assets in the Philippines continuing to outperform and for which it ended producing 37% more power than the 5-year average. The assets are expected to continue this trend, with power generation predicted to be up 30% on historical averages throughout Q4.

With the increased performance of its assets in the Philippines, the company also recorded its all-time high EBITDA, according to Terje Pilskog, CEO at Scatec, with NOK850 million accrued in Q3 2022, an increase from the NOK767 million made in Q3 2021.

After ramping up its solar project development during Q2, the construction of its solar PV projects in South Africa (540MW with 225MW/1,140MWh of battery storage), Brazil (531MW in partnership with Equinor and Hydro Rein) and Pakistan (150MW) are progressing well, with the latest suffering delays due to the floodings that ravaged the country earlier in the year. The expected construction time for the new power plants is said to be between 12-18 months.

During Q3 2022, the Norwegian IPP also announced the construction of a 50MW solar project in Botswana for which it signed a 25-year power purchase agreement (PPA) with state-owned utility Botswana Power Corporation (BPC).

The company’s portfolio currently sits at 3.3GW of renewables in operation, 1.2GW of projects under construction and a backlog of projects totalling 893MW. Its pipeline currently sits at 15GW, up 257MW from Q2 2022, of which a third is solar PV. Historically, half of the projects in its pipeline have been realised.

With the increased performance of its Philippines assets and currency exchange rates, Scatec has reviewed its guidance for 2022 with an increased EBITDA of NOK2.75-2.85 billion, up NOK200 million.

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