Scatec ASA

Capital/Financing Update • Jun 30, 2023

Scatec reaches financial close for its Grootfontein solar projects in South Africa and prepares for construction start

Scatec reaches financial close for its Grootfontein solar projects in South Africa and prepares for construction start

Oslo, 30 June 2023: Scatec ASA, a leading renewable energy company, has reached

financial close for its three Grootfontein solar projects in South Africa, won

as part of the Department of Mineral Resources' fifth bidding round of its

Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) in

The solar power plants will be the first Scatec assets located in the Western

Cape province of the country and have a total capacity of 273 MW solar power.

Once operational the projects will deliver much needed renewable energy under a

20-year Power Purchase Agreement. The three solar plants will lead to a combined

abatement of 630,000 tonnes of CO2 emissions annually.

"South Africa is a focus market and this value accretive investment with project

returns above our return hurdle, is in line with our strategy to grow profitably

and build scale in Sub-Saharan Africa. We are now looking forward to starting

construction next year and achieving commercial operation in 2025, while

powering approximately 100,000 households in the region," says Scatec CEO Terje

Pilskog.

The power plants have an estimated total project cost of ZAR 5.1 billion (USD

270 million) of which Scatec's EPC contracts account for approximately 75%. The

project will be financed by equity from the owners and ZAR 4.5 billion (USD 241

million) of non-recourse project finance debt provided by Standard Bank of South

Africa as mandated lead arranger. This is a landmark transaction as the first

REIPPPP Solar PV projects in the fifth bidding round to reach financial close.

Scatec will own 51% of the equity in the project, with H1 Holdings, our local

Black Economic Empowerment partner owning 46.5% and the Grootfontein Local

Community Trust 2.5%. Scatec will be the Engineering, Procurement and

Construction (EPC) provider and provide Operation & Maintenance as well as Asset

Management services to the power plants. Construction start is expected during

the first quarter of 2024.

For further information, please contact:

For analysts and investors: Andreas Austrell, VP Investor Relations, tel:

+47 974 38 686, andreas.austrell@scatec.com

(mailto:andreas.austrell@scatec.com)

For media: Meera Bhatia, SVP Communications & Government Affairs, tel:

+47 468 449 59, meera.bhatia@scatec.com (mailto:meera.bhatia@scatec.com)

?

About Scatec?

Scatec is a leading renewable energy solutions provider, accelerating access to

reliable and affordable clean energy emerging markets. As a long-term player, we

develop, build, own, and operate renewable energy plants, with 4.6 GW in

operation and under construction across four continents today. We are committed

to grow our renewable energy capacity, delivered by our passionate employees and

partners who are driven by a common vision of 'Improving our Future'. Scatec is

headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the

ticker symbol 'SCATC'.?To learn more, visit?www.scatec.com

(https://scatec.com/)?or connect with us on?LinkedIn

(https://www.linkedin.com/company/scatec).?

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to Section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was published by Kine Aaltvedt, Communication &

IR Coordinator at Scatec ASA, on 30 June 2023 at 08:28 CEST.