Scatec ASA

Regulatory Filings • Oct 31, 2016

Scatec Solar to sign PPA for Mozambique's first large scale solar plant

Scatec Solar to sign PPA for Mozambique's first large scale solar plant

October 31, 2016: Scatec Solar and Norfund will today sign a Power Purchase

Agreement securing  the sale of solar power over a 25 year period to the state

owned utility Electricidade de Mozambique (EDM).

The agreement will be signed at a ceremony in Maputo today in the presence of

the Norwegian Minister of Foreign Affairs, Mr Børge Brende, the Mozambican

Minister of Mineral Resources and Energy, Mrs Letícia Klemens as well as Dr

Mateus Magala, Chairman & CEO of EDM. The project is the first large scale solar

plant to be built in the country and represents an important first step in

realizing Mozambique's ambition to increase renewable power generation in its

energy mix.

The 40 MW plant is located close to the city of Mocuba in the Zambézia Province,

and is expected to deliver 77,000 MWh per year of much needed electricity to the

northern regions of Mozambique. The plant will deliver power to the national

grid and produce enough energy to serve about 175,000 households.

A shareholder agreement will also be signed today between KLP Norfund

Investments AS, Scatec Solar and EDM. The required project investment is

estimated at USD 80 million. Scatec Solar (52.5%), KLP Norfund Investments

(22.5%) and EDM (25%) will provide equity, while IFC, the International Finance

Corporation, a member of the World Bank Group, and the Emerging Africa

Infrastructure Fund intend to provide project finance debt. The parties are

targeting financial close and solar plant construction start in the first

quarter of 2017.

"This is an excellent example of how private public partnerships can deliver

renewable energy and support further economic growth in Mozambique. EDM and the

government of Mozambique have demonstrated strong leadership in taking this

project forward and it paves the way for further investments in renewable energy

in the country," says Scatec Solar CEO, Raymond Carlsen.

"Access to reliable energy is a prerequisite for development. Only 3% of the

world's electricity is generated in Africa, although 15% of the world's

population lives here. Clean energy is a focus investment area for Norfund, and

we appreciate being a partner in this first independent solar power producer

project in Mozambique together with EDM and Scatec Solar, says Norfund CEO,

Kjell Roland."

The project is a result of strong partnership between the governments of Norway

and Mozambique. The Norwegian government has provided economic support as well

as technical expertise to the energy sector in Mozambique for several years.

Scatec Solar is a leading developer and owner of large scale solar plants in

Africa. In addition to this new 40 MW plant in Mozambique, the company operates

200 MW of solar power plants in South Africa and Rwanda and has new projects

under development across Africa, including Mali, Nigeria and Kenya.

For further information, please contact:

Scatec Solar:

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

Norfund:

Mr. Mark Davis, HoD, Clean Energy,      tel: +47  901 47 034

mark.davis@norfund.no

Ms. Inger Nygaard, Communication,      tel:  +47 477 01 248

inger.nygaard@norfund.no

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'.

About Norfund

Norfund is a state-owned investment fund mandated to develop sustainable

enterprises in developing countries. Norfund invests in clean energy, financial

institutions and agribusinesses and is Norway's most important instrument for

private sector development in low- and middle-income countries.

Norfund's main investment regions are Southern Africa and East Africa, with

offices in Nairobi, Johannesburg and Maputo. In addition, Norfund invests in

selected countries in Asia and Latin America, with a regional office in Costa

Rica. Norfund has 68 employees world-wide and USD 1.8 billion in committed

investments in 2015. For more information, see www.norfund.no