Scatec ASA

Capital/Financing Update • Jul 19, 2022

Scatec is starting construction of solar and battery project in South Africa after reaching financial close

Scatec is starting construction of solar and battery project in South Africa after reaching financial close

Oslo / Cape Town, 19 July 2022: Scatec ASA, a leading renewable energy solutions

provider, is starting construction of the three Kenhardt projects in the

Northern Cape Province of South Africa under the Risk Mitigation Independent

Power Producer Procurement Programme (RMIPPPP) after reaching financial close.

Once operational the project will have a total solar capacity of 540 MW and

battery storage capacity of 225MW/1,140MWh, and provide 150 MW of dispatchable

power under a 20-year Power Purchase Agreement to the Kenhardt region - in a

country that is currently suffering from power shortages.

"Achieving commercial and financial close for the Kenhardt projects shows true

commitment by our Scatec team and partners. This project is a first of its kind

and will be one of the world's largest solar and battery facilities. We are now

looking forward to starting construction of this unique and exciting project,

which will be a major contribution to South Africa's economy and green energy

sector," says Scatec CEO Terje Pilskog.

"This is an important milestone in the procurement of renewable energy and

proves that the sector can be relied upon to deliver much-needed electricity

capacity to the grid," adds Jan Fourie, General Manager of Sub-Saharan Africa.

The project will be the largest investment in Scatec's history with a total

capex of approximately ZAR 16.4 billion (USD 962 million) to be financed by

equity from the owners and ZAR 12.4 billion (USD 727 million) in non-recourse

project debt. The debt will be provided by a group of Lenders which includes The

Standard Bank Group as arranger and British International Investments. The

Kenhardt projects are funded in local currency.

Scatec will own 51% of the equity in the project, with H1 Holdings, our local

Black Economic Empowerment partner owning 49%. Scatec will be the Engineering,

Procurement and Construction (EPC) provider and provide Operation & Maintenance

as well as Asset Management services to the power plants. The value of Scatec's

Development and EPC contract for the project is approximately ZAR 13.7 billion

(USD 800 million).

For further information, please contact:

For analysts and investors: Andreas Austrell, VP Investor Relations,

andreas.austrell@scatec.com (mailto:andreas.austrell@scatec.com)

For media: Stian Karlsen, Communications Manager, stian.karlsen@scatec.com

(mailto:stian.karlsen@scatec.com)

About Scatec

Scatec is a leading renewable energy solutions provider, accelerating access to

reliable and affordable clean energy in high growth markets. As a long-term

player, we develop, build, own and operate renewable energy plants, with 3.5 GW

of installed capacity across four continents today. We are targeting 15 GW of

renewable capacity to be in operation or under construction by the end of 2025,

delivered by our 600 passionate employees who are driven by a common vision of

'Improving our Future'. Scatec is headquartered in Oslo, Norway and listed on

the Oslo Stock Exchange under the ticker symbol 'SCATC'. To learn more,

visit www.scatec.com (https://www.globenewswire.com/Tracker?data=vr-

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NRsEg==) or connect with us on LinkedIn

(https://www.linkedin.com/company/scatec).

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to Section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was published by Kine Aaltvedt, Communication &

IR Coordinator at Scatec ASA, on 19 July 2022 at 16:17 CEST