Scatec Solar

In this edition of the Weekend Read, we turn to Egypt. The gigawatt-scale Benban project showcases the North African country’s solar potential, and premium prices for gas exports make the case for a more diverse energy mix. A nation with grand renewables targets – but slow installation rates – may finally be weaning itself off fossil fuel resources.

Shares in the Norwegian renewables company have been trading below the $26 price linked to a recent $527 million fundraising issuance which the developer launched to fund its planned acquisition of hydropower business SN Power.

The 24-day, digital 2020 Africa Energy Forum kicked off on October 20. The event brings together African energy sector officials to identify opportunities, air their views, form partnerships, and take the necessary steps to improve the industry. For solar, challenges in policy making, procurement processes and the effects of the Covid-19 pandemic were discussed, as well as emerging trends such as solar digitalization.

The Norwegian renewables company has already raised $300 million of the $700 million, one-year funding it has shouldered to acquire hydro business SN Power from state-owned Norfund.

The renewables business is set to acquire the SN Power hydropower operator belonging to Norwegian state-owned private equity business Norfund, with the $1.17 billion deal expected to go through in the first half of the new year. Scatec said the transaction could offer floating solar opportunities.

Sources connected to developers at the site confirm the figure has been agreed with the Egyptian Electricity Transmission Company but said it was still subject to change. The utility is seeking raised contributions from renewables companies to cover what it says were rises in building material costs.

While it has seen little fallout for its operating PV assets, the Norwegian solar developer says the coronavirus pandemic has started to affect construction, commissioning and testing of some of its new solar plants.

The Norwegian solar developer has gone from a $15.5 million profit at the end of 2018 to a $4.33 million loss just as its project co-financiers banked $21.5 million.

Although the Wiki-solar website ranking only gives a snapshot of PV project engineering, procurement and construction contracts outside China, it is nevertheless a useful indicator of the changing shape of the global solar market.

The Norwegian developer has opened plants in Ukraine and Egypt. Scatec Solar recently announced it managed to triple energy production in the last year.