Norfund the Norwegian Investment Fund for Developing Countries has signed a partnership deal with Norwegian solar developer Scatec Solar that will see the two entities collaborate on the development of solar power projects in countries where Norfund operates.
Scatec Solar has previously worked with Norfund on the development of 200 MW of solar projects in Africa, which comprised three plants in South Africa and one in Rwanda. This additional partnership promises to prove just as fruitful, providing a framework for collaborative project development and joint investment.
"We enter the partnership with Norfund with great expectations," said Scatec Solar CEO Raymond Carlsen. "Our common objective is to contribute to the increased implementation of renewable energy in Sub-Saharan Africa, and the project-to-project cooperation we have had so far has proved very successful."
Carlsen added that he sees long-term financing as the key enabler for solars development in developing nations, helping to reduce the risk to investors across all phases of a projects execution. "When Norfund invests in our projects," he said, "their backing from the Norwegian government, combined with the company’s excellent standing in the market, will attract other investors as well."
Norfund’s own experience extends deep into Sub-Saharan Africa and includes a suite of successful investments in developing countries. This latest arrangement ensures long-term capital and expertise will be steered towards a number of countries under Norfund’s mandate in need of clean energy solutions.
Norfund CEO, Kjell Roland, explained that Scatec Solar’s proven track record in the execution and management of solar PV projects was attractive to the Fund.
"We are very pleased with the cooperation we have had with Scatec Solar in the realization of four solar power plants," said Roland. "Norfund needs strong industrial partners like Scatec Solar in order to contribute to a sustainable development in poor countries. Our objective is to increase our investments, and this type of long-term cooperation is a prerequisite for us to do so in a good and effective way."
The joint investment vehicle will be 70% owned by Scatec Solar and 30% owned by Norfund, with investments into solar projects made on a consensus basis.