Scatec ASA to Scale Back Stake in South African Solar Plants: A Strategic Move Toward Energy Transition
In an exciting development for the South African renewable energy landscape, Norwegian company Scatec ASA has announced plans to reduce its stake in three solar power plants across the nation. As part of its ongoing strategy, Scatec will divest further by lowering its interest to below 15% in these facilities by the mid-point of 2025. This move marks a significant step in the company’s transition and management of its renewable energy portfolio.
The divestment process aligns with Scatec’s broader strategy and is anticipated to finalize during the first half of 2025. Following this next phase, Scatec’s economic interests will decrease to around 13% in the Kalkbult plant and 12% in the Linde and Dreunberg solar power plants. Each of these plants, initially developed by Scatec, contributes to a collective electricity generation capacity of an impressive 190MW, playing a vital role in South Africa’s renewable energy output.
Previously, in the first phase of divestment, Scatec sold 15% of its stake in the Kalkbult plant and 16% in both the Linde and Dreunberg plants. This transaction resulted in a gross revenue of million, received from Greenstreet 1 Proprietary Limited, a subsidiary of STANLIB Infrastructure Fund II, managed by STANLIB Asset Management. Following these sales, Scatec retains an economic interest of about 31% in Kalkbult and 28% in Linde and Dreunberg.
Notably, the Kalkbult plant, boasting a capacity of 75MW, began operations in 2013, while the Linde plant (40MW) and the 75MW Dreunberg Solar PV park were both commissioned in 2014. Strategically located in the Northern Cape and Eastern Cape provinces, these plants significantly support South Africa’s energy mix and sustainability goals.
Despite scaling back its interests, Scatec remains committed to Sub-Saharan Africa as a core area for growth. Recently, the company celebrated the financial closure of a new battery energy storage system (BESS) in South Africa, which represents a capacity of 103 MW / 412 MWh, underscoring its dedication to advancing renewable energy technology in the region.
Scatec’s spokesperson emphasized the importance of this move, stating, “The remaining accounting gain on a proportionate basis will be recognized at the closing of the second phase of the transaction.” This nuanced approach suggests that while divesting from specific projects, Scatec is focusing on long-term investment strategies that will yield significant returns in the future.
With the global push for sustainable energy solutions, this strategic realignment by Scatec not only reflects its adaptability but also signals the growing potential of renewable energy initiatives in Africa.
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