Scatec ASA

M&A Activity • Oct 4, 2017

Scatec Solar and Statoil to establish partnership in Brazil

Scatec Solar and Statoil to establish partnership in Brazil

Oslo, October 4, 2017: Scatec Solar ASA (SSO) and Statoil ASA (STL) have agreed

to establish a 50/50 Joint Venture to build, own and operate large scale solar

plants in Brazil. The Joint Venture has an ambition to become a significant

player in the Brazilian solar market.

"The potential for solar energy in Brazil is substantial and together with

Statoil we are increasing our ambitions further in this market. We are bringing

into the partnership a strong track record as an integrated independent solar

power producer, while Statoil has a strong engagement and experience from Brazil

through its other energy activities," says Raymond Carlsen, CEO of Scatec Solar.

As the first step of the agreement Statoil secures a 40% equity position in

Scatec Solar's existing 162 MW Apodi project. This project was awarded in the

auction process held by ANEEL, the Brazilian Electricity Regulatory Agency, in

November 2015. A 20-year Power Purchase Agreement (PPA) has been signed with

CCEE, the Brazilian Power Commercialization Chamber. The Joint Venture will be

responsible for construction, operation and maintenance as well as asset

management of the plant. Total project capex is estimated to USD 215 million. As

a part of the transaction, Statoil will inject equity funding for realization of

the project. This corresponds to a consideration of USD 25 million to Scatec

Solar for the 40% ownership stake in the project and for participation in the

Joint Venture.

Financing of the Apodi project has been secured through a project financing

structure with approximately 65% debt leverage. Construction of the solar plant

will start imminently with a plan to connect the plant to the grid towards the

end of 2018.

"Brazil is a core area for Statoil where our ambition is to deliver safe and

sustainable growth in an attractive energy market. We are excited to have

entered our first solar project with an experienced partner like Scatec Solar",

says Irene Rummelhoff, Executive Vice President of New Energy Solutions in

Statoil.

Brazil is targeting to further expand its Renewable Energy Program. PPAs have

been awarded to wind power projects totaling nearly 12 GW. Over the last years,

approximately 3 GW of solar projects have been awarded in three consecutive

utility scale solar auctions. The government plans to award another 7 GW by

For further information, please contact:

Mr. Raymond Carlsen, CEO,          tel: +47 454 11 280

raymond.carlsen@scatecsolar.com

Mr. Mikkel Tørud, CFO,                  tel: +47 976 99 144

mikkel.torud@scatecsolar.com

About Scatec Solar

Scatec Solar is an integrated independent solar power producer, delivering

affordable, rapidly deployable and sustainable source of clean energy worldwide.

A long term player, Scatec Solar develops, builds, owns, operates and maintains

solar power plants, and already has an installation track record of 600 MW.

The company is producing electricity from 322 MW of solar power plants in the

Czech Republic, South Africa, Rwanda, Honduras and Jordan. With an established

global presence, the company is growing briskly with a project backlog and

pipeline of 1.8 GW under development in the Americas, Africa, Asia and the

Middle East. Scatec Solar is headquartered in Oslo, Norway and listed on the

Oslo Stock Exchange under the ticker symbol 'SSO'.

To learn more, visit www.scatecsolar.com