Scatec ASA

Regulatory Filings • Dec 19, 2016

New investors join Scatec Solar to develop the 100 MW Nova Scotia solar project in Nigeria

New investors join Scatec Solar to develop the 100 MW Nova Scotia solar project in Nigeria

Abuja, Nigeria, December 19, 2016: Scatec Solar has signed a Joint Development

Agreement (JDA) with Africa50, an African Infrastructure Fund sponsored by the

African Development Bank and more than 20 African States and Norfund (the

Norwegian Investment Fund for Development Countries), securing investment into

the 100 MW (DC) Nova Scotia Power plant located in Dutse in the Northern

Nigerian state of Jigawa. The project has the potential to significantly

contribute to the plan of the authorities of the State of Jigawa to attract USD

2 billion of investments into Jigawa and implement Nigerian President Muhammadu

Buhari's plans to provide jobs and economic opportunities especially for the

nation's youth.

The signing ceremony of the JDA was held in the presence of Børge Brende, the

visiting Norwegian Foreign Minister, His Excellency, Barrister Ibrahim Hassan

Hadejia, Deputy Governor of Jigawa State, as well as officials from the Nigerian

Bulk Electricity Trading among others. "New local power generation capacity is a

key element to attract sizeable investment into the State and region, especially

into new industries such as light manufacturing and agricultural processing"

said His Excellency the Deputy Governor.

"The formation of this consortium is a strong symbol of the Norwegian and

Nigerian commitment to invest in clean energy in Nigeria. With the Government of

Norway taking a direct investment role through Norfund, significant regional and

Nigerian ownership through Africa50, and the track-record of Scatec Solar, this

offers one of the most solid partnerships for solar PV projects globally," said

Executive Vice President Terje Pilskog who signed the JDA on behalf of Scatec

Solar.

"I am pleased that Africa50 is already making its first investment, which fits

in squarely with our priority to light up and power Africa," said Dr. Akinwumi

Adesina, President of the African Development Bank (AfDB) and Chairman of

Africa50's Board of Directors. Africa50 has been created by African governments,

including Nigeria, the African Development Bank and institutional investors to

mobilize private sector for funding infrastructure projects in Africa. Alain

Ebobisse, Africa50's CEO noted: "Access to reliable energy is one of the most

critical needs in Africa, including in Nigeria, where it is a government

priority. I look forward to deepening the relationship with the authorities of

Nigeria, one of our key shareholder countries, and to supporting more projects

in this and other infrastructure sectors."

Apart from the three equity investors, the American Overseas Private Investment

Corporation (OPIC), Islamic Development Bank and the African Development Bank

are expected to be senior debt providers for the project. International Finance

institutions say the key to successful investment is the Nigerian state's issue

of project documents that provides necessary investor confidence and the

formulation of a clear roadmap to sustainability in the energy sector.

With an estimated investment of USD 150 million, a production of 200,000 MWh of

electricity per year and 120,000 tons of CO2 emissions avoided annually, the

Nova Scotia solar plant will help Nigeria rapidly increase its generation

capacity, provide economic opportunities, fight desertification caused by

climate change, and contribute to fulfilling Nigerian President Muhammadu

Buhari's commitments to develop renewable energy as part of the Paris Climate

Change Agreement.

In July, the Nova Scotia project signed a 20-year PPA with Nigerian Bulk

Electricity Trading (NBET). Located on 200 hectares of land, the project has

strong fundamentals with high solar resources and direct access to the

transmission grid through a simple connection route. The consortium will

continue to work with CDIL, a Canadian renewable energy development company

focused on Africa, and BPS, a Nigerian strategic consulting, to move the project

from "pipeline" and achieve financial close in 2017 and commercial operations in

Nigeria is Africa's largest and the world's 26(th) biggest economy. With

Nigeria's per capita electricity consumption at 155 kwh, one of the lowest in

the world, there is a huge need to increase power production in order to expand

and diversify the Nigerian economy.

For further information, please contact:

Mr. Mikkel Tørud, CFO             Tel: +4797699144

mikkel.torud@scatecsolar.com

Ms. Julie Hamre, Media            Tel: +4792020854

julie.hamre@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 close to

600 MW.

The company is producing electricity from 426 MW of solar power plants in the

Czech Republic, South Africa, Rwanda, Honduras, Jordan and the United States.

With an established global presence, the company is growing briskly with a

project backlog and pipeline of close to 1.6 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'.