Scatec ASA

Regulatory Filings • Oct 1, 2021

Government approval of Scatec's RMIPPP project in South Africa delayed - 2021 growth target will not be reached

Government approval of Scatec's RMIPPP project in South Africa delayed - 2021 growth target will not be reached

Oslo, 1 October 2021: Scatec has been notified by the IPP Office in South Africa

that the government approval process for the RMIPP programme has been delayed

and that timing of financial close has been moved to the end of January 2022.

Construction start for Scatec's 540 MW + storage project is therefore expected

in the first quarter 2022.

The renewable industry is currently affected by cost inflation and supply chain

disruptions, which to a varying degree affects Scatec's project backlog and

pipeline. Scatec has decided not to move forward with backlog projects totaling

166 MW in Brazil and Ukraine, as projected margins and returns fall below the

Company's hurdle rates. The company expects total impairment of NOK 40-50

million of development cost related to the two projects, which will be charged

to the Income Statement for the third quarter 2021.

On this basis, Scatec will not reach the target of 5.9 GW in operation or under

construction by the end of 2021, and the project backlog has been lowered from

2,081 MW to 1,915 MW.

The target to reach 15 GW in operation or under construction by the end of 2025

remains in place.

"It is disappointing not to reach the 2021 growth target, but with our track

record and solid pipeline we will continue to deliver growth and long-term

value. South Africa is our home market, and we are looking forward to delivering

much needed electricity under the RMIPP programme", says CEO Raymond Carlsen.

For further information, please contact:

Andreas Austrell, VP IR

Tel: +47 974 38 686, andreas.austrell@scatec.com

(mailto:andreas.austrell@scatec.com)

Mikkel Tørud, CFO

Tel: +47 976 99 144, ir@scatec.com (mailto:ir@scatec.com)

About Scatec

Scatec is a leading renewable power producer, delivering affordable and clean

energy worldwide. As a long- term player, Scatec develops, builds, owns and

operates solar, wind and hydro power plants and storage solutions. Scatec has

more than 3.5 GW in operation and under construction on four continents and more

than 500 employees. The company is targeting 15 GW capacity in operation or

under construction by the end of 2025. 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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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 1 October 2021 at 08:00 CEST