Scatec’s Release Joins Forces with IFC to Deliver Clean and Affordable Power Solutions to Africa

Scatec, through its subsidiary Release, has sealed a USD 100 million loan deal with the International Finance Corporation (IFC) of the World Bank. This agreement marks a key milestone in their joint initiative to introduce simplified, cost-effective, and cleaner power solutions to African utilities. As part of this partnership, an additional USD 65 million guarantee facility has been established to bolster Release’s customers’ payment commitments, all with the aim of phasing out expensive diesel and expanding electrification across the region.

Operating on an innovative leasing model, Release offers adaptable short- or long-term contracts targeting the mining and utilities sector in Africa. Their approach revolves around modular, mobile, and redeployable equipment.

IFC, renowned for its pivotal role in fostering private sector development globally, is extending this loan to fund Release’s asset development and installation. The aim is to lease these assets to African utilities.

The guarantee facility is structured to ensure payments to Release from lessees of solar and battery equipment. This setup mitigates risks for Release while allowing African utilities and governments to access affordable renewable energy without the financial commitment typically associated with conventional infrastructure projects.

The collaboration with IFC is anticipated to fuel the growth of Release’s platform significantly.

The inaugural application of this combined financing structure will be observed in a project comprising a 35 MW solar and 20 MWh battery endeavor in N’djamena, Chad. Release has already inked a lease contract for this project. Furthermore, ongoing discussions are underway to expand the capacity of Release’s existing solar PV and battery projects in Northern Cameroon, totaling 36 MW and 20 MWh respectively.

Sarvesh Suri, IFC’s Regional Industry Director for Infrastructure and Natural Resources, Africa, emphasized the solution’s innovative nature and its ability to swiftly address the escalating energy demands in African countries with clean power solutions.

Alixe Naïmbaye, Chad’s Minister of Hydrocarbons and Energy, expressed satisfaction in Chad being the first beneficiary of such a solar power plant, aligning with the government’s energy access objectives.

Scatec CEO Terje Pilskog and Release CEO Hans Olav Kvalvaag both highlighted the significance of IFC’s support and the innovative approach of Release in revolutionizing renewable energy solutions across Africa.

This strategic move follows Release’s recent funding injection of USD 102 million from Climate Investor One, reinforcing its commitment to advancing renewable energy solutions across select African markets.