Fund manager Climate Fund Managers (CFM) has announced a $102 million investment in Release by Scatec. The subsidiary of Norwegian company Scatec finances and installs modular solar energy production and electricity storage systems in Africa.
Release by Scatec is acquiring the resources it needs to develop its activities in Africa. The subsidiary of Norwegian company Scatec has received a $102 million investment from fund manager Climate Fund Managers (CFM), based in The Hague, Netherlands. CFM is making this investment through the Climate Investor One (CI1) fund, an $850 million hybrid vehicle dedicated to financing renewable energies.
With this financing, Release should continue to develop its activities. In sub-Saharan Africa, the company finances and builds scalable solar power plants with capacities ranging from 1 to 30 MWp. These installations, equipped with battery storage systems, supply energy to electricity companies and mining activities. According to CFM, Release by Scatec’s solutions enable “clean energy to be supplied between six and nine months from initial discussions, rather than the three to five years of a traditional IPP (independent power producer). As it is modular, customers can gradually increase their electricity requirements from 5 MWp to 30 or 50 MWp, depending on their needs”.
Decarbonising mining activities
“One of the main barriers to the adoption of solar technology is its high capital intensity. Release helps its customers overcome this barrier by offering a flexible and affordable model. The price of our solar photovoltaic and battery solution is extremely competitive compared to diesel generators or other traditional grid stabilisation measures,” says Hans Olav Kvalvaag, CEO of Release by Scatec.
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These solutions are already being adopted in sub-Saharan Africa and Latin America. In Cameroon, South Africa, South Sudan and Mexico, Scatec’s subsidiary already has an installed capacity of 47 MWp of photovoltaic solar energy and 20 MWh of battery storage. In Chad, Release by Scatec has signed additional contracts for 35 MWp of solar energy and 20 MWh of storage.
In South Africa, the company has teamed up with Engie to install a 616 kWp solar system at the Mogalakwena platinum mine in Limpopo province. Some of this electricity will be converted into hydrogen to decarbonise the activities of Anglo American, which operates the Mogalakwena mine.
Jean Marie Takouleu
