Scatec Solar to get hydropower developer, proclaims floating solar possibility

Oct 16, 2020 12:33 PM ET
  • Scatec Solar has actually struck a US$ 1.1 billion bargain to obtain leading hydropower developer SN Power, proclaiming the capacity for floating solar on hydro storage tanks.
Scatec Solar to get hydropower developer, proclaims floating solar possibility
Image: SN Power

The Norwegian solar designer and also independent power producer (IPP) disclosed it had actually authorized a binding arrangement to obtain 100% of the shares in SN Power in a bargain which it stated formed a vital part of its approach to become a worldwide, large-scale gamer throughout multiple renewable energy innovations.

Scatec Solar is to get SN Power from Norfund, the state-owned investment fund which has likewise been a lasting companion of Scatec Solar's.

Scatec Solar said the consolidated company would certainly have 450 workers and also 3.3 GW of nuclear power plant either in operation or unfinished spread throughout 14 different nations.

In getting SN Power, Scatec Solar will certainly take on a 1.4 GW profile of hydropower properties in the Philippines, Laos and also Uganda, along with a 2.5 GW pipe of possible projects based mainly in Asia and also Sub-Saharan Africa.

Scatec Solar provided a number of strategic advantages to the deal, including both technological and also geographical diversification contrasted to the company's existing offering and also hydropower offering "naturally attractive characteristics" such as storage space, perpetual asset life and also reduced operational dangers.

In Addition, Raymond Carlsen, chief executive at Scatec Solar, talked up the potential to combine both firm's competence and also release floating solar projects on existing hydropower facilities.

" Hydropower and solar PV are complementary innovations, leading to new project opportunities, as an example floating solar on hydro tanks," he claimed.

" SN Power includes scale and significant cash flow from running plants and also will raise stakeholder value; benefiting consumers, staff members, shareholders, service companions as well as the societies in which we operate."

The bargain was introduced on the exact same day that Scatec Solar reported a slide in Q3 revenues, falling 26% year-on-year to NOK319 million (US$ 34 million), driven by boosted business and also advancement and also construction prices sustained during the coverage period. Development as well as building and construction revenues rolled as a result of the firm's building cycle, with all main activities in the area having been completed.

The team's revenues from power production are, nonetheless, progressively boosting as more projects involve fulfillment. Scatec Solar's power assembly line reported incomes of NOK379 million (US$ 40.4 million) in Q3, up greater than 30% year-on-year.

The firm's project pipeline likewise continued to swell, covering 6.5 GW on the back of an extra 900MW tape-recorded in Q3 2020, including additions in high-growth markets consisting of Brazil, Vietnam as well as India.

Carlsen stated the team continued to see high project growth activity throughout a lot of its operational markets in spite of COVID-19 related restrictions.

"We are broadening our growth method with an ambition to become a global massive player in solar, hydro, wind and storage solutions, as well as the acquisition of SN Power announced today is an important part of this method," Carlsen said.

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