Norway’s solar power producer Scatec Solar and the Norwegian Investment Fund for Developing Countries (Norfund) are partnering to realise “our common objective of contributing to the increased implementation of renewable energy in Sub-Saharan Africa”, said Scatec boss Raymond Carlsen.
The two organisations will jointly invest in solar photovoltaic (PV) projects in countries within Norfund’s mandate.
Scatec Solar will hold 70 per cent of the joint investment company and Norfund the remaining 30 per cent. Investments will be made on a consensus basis in projects the partners develop together and which meets the required return on capital employed.
Funding for renewable projects
Mr Carlsen said: “We enter the partnership with Norfund with great expectations.
“Long term financing is the key to enable any solar project and will reduce the risk in all phases of the project execution.
He added: “When Norfund invests in our projects, their backing from the Norwegian Government combined with the company’s excellent standing in the market will attract other investors as well.”
Scatec Solar and Norfund have already partnered on four solar PV projects in Africa totalling 200 MW (three in South Africa and one in Rwanda).
Commenting on the partnership, Kjell Roland, chief executive of Norfund, said: “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.”