Norwegian PV developer Scatec Photo voltaic has acquired hydro developer SN Energy and detailed its plans for enlargement in new geographies and new applied sciences.

Scatec can also be dropping the ‘Photo voltaic’ from its title after agreeing to accumulate SN Energy for $1.1 billion from NorFund, a personal fairness agency owned by the Norwegian authorities. The deal is anticipated to shut in Q2 2021.

Scatec has three.three gigawatts of operational capability and a goal to succeed in four.5 GW by the tip of 2021. The SN Energy acquisition means the mixed corporations may have a pipeline of 9.5 GW of renewable tasks. That compares favorably with its friends, resembling Mainstream Renewable Energy, which has a pipeline of 9.eight GW.

Scatec CEO Raymond Carlsen mentioned the main focus was now on progress. “You may suppose the vitality transition goes rapidly however it will be even faster,” he mentioned throughout an investor convention on Friday.

From rising to progress markets

Scatec has “a number of hundred megawatts” of wind tasks in growth in Africa and Southeast Asia, in response to Carlsen. Scatec will develop greenfield websites whereas additionally trying to make venture acquisitions.

Scatec has been one thing of a quiet achiever within the photo voltaic market. The Oslo-listed agency made its title as an early mover creating utility-scale photo voltaic vegetation in South Africa. Since then it has added tasks in different rising markets together with Egypt, Malaysia and Ukraine. It claims to be the biggest photo voltaic operator in Africa with round 1 GW of PV capability.

The three international locations the place SN Energy is lively — the Philippines, Laos and Uganda — are all new territories for Scatec.

Carlsen mentioned Scatec will now shift its focus from solely working in rising markets to working in any market providing progress potential, together with some OECD international locations.

The operational belongings of SN Energy will make an outsize contribution to Scatec’s money move, which Scatec CFO Mikkel Tørud mentioned will permit the corporate it to speed up investments in new tasks.

SN Energy had an EBITDA margin of 65 % in 2019.

Becoming applied sciences collectively

SN Energy’s 2.5 GW portfolio consists of hydro, wind, storage and floating photo voltaic, which the corporate has been testing on the reservoirs of a few of its hydro belongings. Carlsen mentioned a part of the attraction of the acquisition was the complementary cultures of the 2 Norwegian companies, however the applied sciences supplied by every have been additionally match.

A 40 MW-battery venture within the Philippines can also be described as being at a “mature” stage of growth. The battery will present ancillary providers to the grid in addition to providing backup energy for the hydro itself.

“I’m getting very motivated once I see issues like solar energy on a hydro reservoir,” Carlsen mentioned. “What a fantastic relationship that’s, particularly in components of the world the place water provides are scarce. The photo voltaic can present energy in the course of the day and the hydro in the course of the night time.”

“We’ll see extra relationships like that. These applied sciences match collectively.”

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