European photovoltaic (PV) company Scatec Solar will be acquiring 100% of the shares in hydropower developer and independent power producer (IPP) SN Power from Norwegian investment fund Norfund for just over $1.17-billion.
The acquisition forms an important part of Scatec’s broadened growth strategy, with an ambition to become a global large-scale player in solar, hydro, wind and storage solutions, and an integrator of high-value infrastructure solutions.
Scatec and SN Power have a unique and complementary portfolio of assets, geographical footprint and capabilities, and will together hold a large project pipeline across solar, hydro, wind and storage, the companies noted in an October 16 statement.
The combined company will have 450 employees, power plants in 14 countries and 3.3 GW of plants in operation and under construction.
When all plants are in full operation from early 2021, the median yearly production is expected to be 4.1 TWh.
“Hydropower and solar PV are complementary technologies, resulting in new project opportunities, for instance floating solar on hydro reservoirs. With this transaction, we see great potential in broader project origination and geographical expansion into growth markets in South East Asia and sub-Saharan Africa,” commented Scatec CEO Raymond Carlsen.
Norfund’s investment in SN Power has contributed to job creation, improved living conditions and avoided carbon emissions, said Norfund CEO Tellef Thorleifsson, who added that by mobilising private capital in SN Power, the company can recycle significant funds for new investments, “demonstrating the effectiveness of using development aid to invest in clean energy in developing countries”.
The transaction is conditional upon customary regulatory approvals and local competition approvals and is likely to be completed in the first half of 2021.
Until then, the two companies will continue to operate as separate entities.