Scatec ramps up PV project development after earnings dip

• Independent power producer (IPP) Scatec has actually increase project development activity after witnessing its profits fall by almost 14% year-on-year.

Higher power sales tasks in the Philippines have actually partially offset lower revenues in Ukraine which had the firm's opening up quarter results.

The IPP recorded revenues of NOK1,130 billion (US$ 115.16 million) in the 2nd quarter of 2022, up from NOK1,007 million in Q2 2021. But incomes fell by almost 14% from NOK601 to NOK517 million (US$ 52.53 million).

In the second quarter Scatec ramped up solar project development as it started building of a 540MW solar PV co-located with 1,1100 MWh battery storage space in South Africa, a 531MW solar plant in Brazil as well as proceeded a 150MW solar plant in Pakistan.

The company's backlog has actually lowered from 1.7 GW in Q1 2022 to less than 1GW at the end of Q2, with its current portfolio including 3.3 GW of renewable assets in operation and a pipeline of 14.7 GW, up 2.5 GW from Q2 2021.

In addition, the IPP's power-to-X tasks have actually proceeded, Scatec having actually now relocated its 100MW electrolyser green hydrogen project in Egypt right into stockpile. The project, which is set to have a manufacturing capacity of one million tonnes of green ammonia annually, will be powered by 260MW of solar and wind power.

Terje Pilskog, Chief Executive Officer at Scatec, claimed: "Going forward, our leading priority is to ramp up construction activities, optimise returns of our backlog projects and remain to develop our pipe."

Scatec reviewed its support for 2022 with a raised EBITDA of NOK2.5-2.7 billion, up NOK150 million, reflecting currency exchange rates according to completion of the second quarter.

The IPP expects power manufacturing to get to 1,060-1,160 GWh throughout Q3 2022, with a 25% above ordinary manufacturing in the Philippines in the following 3 months.