Scatec ASA

Share Issue/Capital Change • Jun 1, 2021

Scatec awarded 540 MW solar plant with storage in a government tender in South Africa

Scatec awarded 540 MW solar plant with storage in a government tender in South Africa

?Oslo, 1 June 2021: Scatec has today been awarded Preferred Bidder status on

three projects totaling 150MW (3x50MW) of Contracted Capacity, by the Department

of Mineral Resources and Energy in South Africa under the technology agnostic

Risk Mitigation Power Procurement Programme (RMIPPP). The tariffs awarded to the

projects fall within the range of the previously awarded preferred bidders.

The three projects (Kenhardt 1-3), in total consisting of 540 MW solar and 225

MW/1,140 MWh battery storage, were bid based on sites located in the sundrenched

Northern Cape Province of South Africa. The projects awarded to Scatec are the

only projects with preferred bidders status exclusivity making use of renewable

energy technology, making it arguably one of the largest single site solar +

storage hybrids in the world.

"This is truly a great milestone for Scatec and renewable energy. We are

demonstrating that cost competitive dispatchable solar power can be delivered at

large scale with short implementation time. This confirms that renewable energy

is an ideal choice for driving electricity generation growth in Africa and other

developing countries", says CEO Raymond Carlsen.

The solar and storage solution will provide dispatchable power from 5:00 am in

the morning to 21:30 at night and will deliver much needed power to the South

African economy. The power will be sold under a 20-year Power Purchase Agreement

with a paid capacity charge.

Financing has already been sourced as part of the bidding process. Project capex

is estimated to be USD 1 billion and will be funded by project finance debt from

a consortium of commercial banks and Development Finance Institutions with

expected debt leverage of 80%. 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.

Financial close is expected later in 2021 with grid connection by the end of

"This award further cements Scatec's position as the leading solar IPP in South

Africa and on the African continent. To date, we have successfully completed six

solar plants under the country's well known REIPPP programme and employ more

than 200 people, which is set to grow further. With Round 5 of REIPPP launched

in April, we are looking forward to further building on this solid foundation

and experience from successful solar projects and add other renewable

technologies to our portfolio", says Carlsen.

Scatec's integrated technology approach strengthens the competitiveness of

renewables and expands the market potential. The company sees significant

opportunities within hybrid solutions and is currently working on developing

several projects using solar and batteries to create firm renewable power; and

also combining solar with hydro to increase value proposition and

competitiveness of hydro. In addition, Scatec works with partners to combine

competitive renewable energy with industrial projects. In total, about 15

percent of the company's project pipeline consists of hybrid solutions projects.

For further information, please contact:

Mikkel Tørud, CFO, tel: +47 976 99 144, ir@scatec.com (mailto:ir@scatec.com)

Ingrid Aarsnes, VP Communication & IR, tel: +47 950 38 364,

ingrid.aarsnes@scatec.com (mailto:ingrid.aarsnes@scatec.com)

About Scatec ASA:

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, or connect with us on Linkedin

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This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act