Regulatory Filings • Jul 7, 2015
Regulatory Filings
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Scatec Solar and Nizam Energy to build close to USD 300 million solar power plants in Pakistan
Oslo, July 7: On the occasion of Pakistani Prime Minister Nawaz Sharif's visit
to Norway, Scatec Solar and Nizam Energy signed an agreement here today to
jointly develop and Build-Own-and-Operate solar power plants in Pakistan. The
signing ceremony took place in the presence of Norwegian Prime Minister Ms. Erna
Solberg and Prime Minister Mr. Sharif.
The development and financing of the 150 Megawatts (MW) solar plants are
expected to be completed towards the end of 2015, with construction starting in
the first quarter of 2016. Located in Sindh province, the photovoltaic plants
involve an initial investment of nearly USD 300 million. The projects,
comprising three plants generating 50 MW each, is to be completed in about a
year. An additional 150 MW is planned to be developed in a second stage,
bringing the total investment to nearly USD 600 million. The 150 MW plants will
be able to power about 150, 000 homes during peak daytime hours.
Mr. Raymond Carlsen, CEO of Oslo-headquartered Scatec Solar ASA (SSO) and Mr.
Usman Ahmad, CEO of Karachi-based Nizam Energy (Pvt) Ltd signed the agreement on
behalf of their companies.
The solar projects aim to stimulate investment from global and local investors
in Pakistan. They will provide more than 1,000 jobs to people in the region
during the construction phase. Thereafter, for the long term operation of the
plants, 60 people will be employed. As in all other countries where it operates,
Scatec Solar will put special emphasis on transferring technical expertise to
the local community.
In the run-up to the UN Climate Summit in Paris this December, there is
widespread demand for clean energy. These solar energy projects will combat
climate change by reducing CO2 emissions by about 300,000 tons when completed.
Pakistan's Central Power Purchasing Agency (CPPA) will purchase the electricity
generated by the joint venture for a duration of 25 years and will receive 50 %
of the revenues from Carbon Credits generated by the project. From the 150 MW
solar plants, an estimated 290 Gigawatt hour (GWh) of electricity per year will
be added to the grid, which will go up to about 580 GWh when the second stage is
completed.
Pakistan faces an acute energy crisis. Electricity shortfall has exceeded 7,000
MW, which is about one-third of peak demand during extreme periods. If this
energy deficit is addressed, experts say, Pakistan could increase its GDP by as
much as two per cent annually through additional production, exports and
employment. In July 2013, shortly after taking office, the Nawaz Sharif
Government introduced a new Power Policy that aims to significantly increase
power generation.
Mr. Raymond Carlsen said: "This project is an important landmark in Scatec
Solar's journey to provide clean and affordable energy in developing countries.
The Pakistani authorities have shown their commitment to addressing the nation's
rising energy demand." Mr. Usman Ahmad remarked: "Access to energy is a
prerequisite to improve standard of living. We are keen to increase the role of
clean solar power in Pakistan's energy mix."
Apart from being the majority shareholder in the project, Scatec Solar ASA (SSO)
will also be responsible for the financing, turnkey construction, operation and
maintenance of the projects, thus demonstrating it's long-term commitment to the
smooth functioning and efficiency of projects undertaken. Nizam Energy will be
the local co-developer, co-investor and a potential sub-contractor during
construction and operation phase. The two partners have been working together
since late last year to develop solar power projects in Pakistan.
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
Contact:
Mr. Terje Osmundsen, Senior Vice President + 47 909 23 696 /
For more on Scatec Solar, please visit www.scatecsolar.com
About Nizam Energy:
Nizam Energy is a subsidiary of a 150-year-old family business engaged in a
diversified portfolio of textile, hospitality and recycling businesses. Nizam
Energy is a leading player in the Solar PV Industry in Pakistan and has
successfully executed the first 100 MW utility solar photo voltaic project in
Pakistan as a sub contractor and working on a further pipeline in excess of 200
MW. Nizam excels in project finding and project development, engineering and in
sub-EPC contracting, adopting an integrated, in- house approach to all phases of
a projects life.
Contact: Mr.Usman Ahmad, Chief Executive Officer
+92 3008250564/ [email protected]
For more on Nizam Energy, please visit www.nizamenergy.com
[HUG#1934884]
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