Regulatory Filings • Jul 9, 2015
Regulatory Filings
Open in ViewerOpens in native device viewer
Scatec Solar to build first large scale solar power plant in West Africa
Bamako, Mali, July 9, 2015: An historic agreement to Build-Own-and Operate West
Africa's first utility-scale solar power plant was signed here today by
Norwegian company Scatec Solar and its partners, the Malian Ministry of Energy
and Water and Electricité du Mali (EDM), the electricity utility of Mali. To be
located near the ancient city of Segou in South-East Mali, 240 kms from Bamako,
the 33 MW solar project is being developed in partnership with IFC InfraVentures
and the local developer Africa Power 1.
Speaking on the occasion, the Malian Minister of Energy and Water, Mr. Mamadou
Frankaly Keita said: "This landmark agreement signals the Government's
commitment to meet the nation's growing energy demand and to provide clean,
renewable and affordable energy to our people".
Today's agreements include a Power Purchase Agreement (PPA) between EDM and
Segou Solaire SA, the local project company controlled by Scatec Solar, for the
delivery of solar power over the next 25 years. The PPA with the utility is
complemented by a Concession Contract with the Government of Mali, granting
license to Segou Solaire to operate.
With this PPA, Scatec Solar strengthens its position as the leading, integrated
solar IPP (Independent Power Producer) in Africa. The Oslo-headquartered
company's CEO Raymond Carlsen says: "This project is another great milestone for
Scatec Solar. After several years of development efforts in the region, we can
now move forward with the first utility-scale solar plant in West Africa. The
Malian Authorities have demonstrated decisive will to tackle the nagging issue
of power supply."
Scatec Solar ASA (SSO) will own 50 percent of the power plant and World Bank's
IFC InfraVentures, will hold 32.5 percent, while the local project development
company, Africa Power 1, headed by Mr. Ibrahim Togola, will hold 17.5 percent.
Scatec Solar will construct the plant, and in addition, provide operation and
maintenance services after the plant is connected to the grid.
"One of the pillars of the World Bank's Country Assistance Strategy for Mali is
to increase access to energy, a development fundamental. IFC InfraVentures'
partnership with Scatec Solar and Africa Power 1 helps advance this strategy
through Scatec Segou, part of a series of renewable energy projects we are
developing in the country," said Alain Ebobisse, Global Head of IFC
InfraVentures.
Dr. Ibrahim Togola, the chairman of Africa Power 1 SA and General Administrator
of Scatec Solar West Africa SA says: "Today's event is historic because Mali now
becomes the first country to install the largest solar grid-connected power
plant in the region. This high-profile joint-venture in which Malian citizens
participate will serve as a model to launch the solar era in West Africa."
Annual production from the 33 MW solar power plant is estimated to be 60,000
Megawatts hour (MWh). The ground-mounted photovoltaic (PV) solar plant will
deploy approximately 130,000 PV modules on a fixed tilt system and will connect
to an existing transmission line. This will provide clean and affordable energy
to a country in dire need for more power generation capacity to support further
economic growth. The power generated from the plant represents five percent of
Mali's total electricity consumption, equal to the electricity consumption of
60,000 households. During the construction phase, the project will provide 200
local jobs. As part of Scatec's corporate philosophy, special emphasis will be
put on transferring technical expertise to the local community.
In an era of climate change concerns, the 33 MW Segou solar power plant is an
important initiative to reduce carbon emissions in the power sector in West
Africa. When completed, the plant will reduce CO2 emissions by about 46 000
tons. Scatec Solar and EDM will jointly register the project with the United
Nations CDM (Clean Development Mechanism) under Scatec Solar's program for solar
projects in Africa. This allows generation of revenues from the sale of
international carbon credits.
The project with a total cost of Euro 52 million is to be financed through 45%
senior project finance debt. IFC will arrange the Debt for a total amount of
Euro 23 million (of which it will itself fund Euro 13 million).Further, the
project has already been granted a concessional loan that will cover 30% of the
total project costs from Climate Investment Fund through the program "Scaling Up
Renewable energy in Low Income Countries Program" (SREP). The remaining 25% is
provided as equity by the project partners. Financial close is expected before
the end of this year.
For further information, please contact
:
West Africa office, Paris: Mr. Paul Francois Gauvin, General Manager,
+33 678821547 / [email protected]
Oslo HQ: Mr Terje Osmundsen, Senior Vice President + 47 909 23 696 /
Investor enquires:
Mr. Mikkel Tørud, CFO,
+47 976 99 144/ [email protected]
About Scatec Solar
Scatec Solar is an integrated independent power producer, aiming to make solar a
sustainable and affordable source of energy worldwide. Scatec Solar develops,
builds, owns and operates solar power plants and delivers power from 219 MW in
the Czech Republic, South Africa and Rwanda. The company is in strong growth and
has 207 MW under construction in the US, Honduras and Jordan as well as a solid
pipeline of projects under development in Africa, Middle East, Americas and
Asia.
For more on Scatec Solar, please visit www.scatecsolar.com
[HUG#1935882]
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.