Scatec ASA

Regulatory Filings • Apr 5, 2018

Scatec Solar signs Power Purchase Agreements for 258 MW in South Africa

Scatec Solar signs Power Purchase Agreements for 258 MW in South Africa

Oslo, April 5, 2018: Scatec Solar ASA (SSO) and partners last night signed all

project documents and are shortly expected to achieve financial close for three

solar PV plants in South Africa totaling 258 MW.

"South Africa continues to be an important market for Scatec Solar and we are

very pleased to see that the renewables programme now is finally moving forward.

We believe solar energy will continue to play an important role in the energy

mix and provide strong support for economic growth in the country in the years

to come", says Raymond Carlsen, CEO of Scatec Solar.

In April 2015, Scatec Solar was awarded preferred bidder status for the three

projects in Upington in the fourth bidding round under the REIPPP (Renewable

Energy Independent Power Producer Procurement) Programme in South Africa. Scatec

Solar will build, own and operate the solar power plants with a 42%

shareholding. KLP Norfund Investments will hold 18%, the surrounding Community

of Upington 5% and a South African Black investor will hold the remaining 35% of

the equity.

The three projects involve a total investment of ZAR 4.76 billion. A consortium

of commercial banks and DFIs with Standard Bank in the lead are providing non-

recourse project finance of ZAR 3.68 billion, accounting for 77% of the total

project cost.

Construction start is expected in the third quarter of 2018 with grid connection

towards the end of 2019. The plants are, on an annual basis, expected to produce

650 GWh of electricity and avoid about 550,000 tons of CO2 emissions. Revenues

in the first year of operations are expected to reach ZAR 720 million. All

contract terms are based on the original award in April 2015.

Scatec Solar will be the Engineering, Procurement and Construction (EPC)

provider for the projects and provide Operation & Maintenance as well as Asset

Management services to the power plants.

The 258 MW adds to Scatec Solar's large portfolio of projects that have reached

financial close over the last six months now totaling 1,092 MW in South Africa,

Egypt, Brazil, Malaysia, Honduras and Mozambique.

When the new power plants are in operation Scatec Solar will hold a diversified

asset portfolio with a capacity of 1.4 GW. This portfolio is expected to

generate 2,900 GWh of electricity per year with annual revenues of about NOK

2.7 billion - all supported by long term Power Purchase Agreements of 20-25

years. Scatec Solar's economic interest in the asset portfolio is 50%.

"With financial close reached for 1.1 GW of solar projects we have entered into

construction contracts with a value of about NOK 8.5 billion that will be

realized over the next 1-2 years. We are well prepared for this construction

activity and we are now taking a big step forward as a leading emerging market

focused solar power producer. On the back of our success, we continue to grow

our project pipeline and we are pursuing a large number of attractive

opportunities both in existing and new markets", says CEO Raymond Carlsen.

For further information, please contact:

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

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 1,000 MW.

Currently, the company is producing electricity from 322 MW of solar power

plants in the Czech Republic, South Africa, Rwanda, Honduras and Jordan and

another 434 MW are under construction.

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

project backlog and pipeline of more than 1.5 GW under development in the

Americas, Africa, Asia and the Middle East. Scatec Solar is headquartered in

Oslo, Norway.