Renewable energy company Scatec has entered into a lease agreement with electricity company Eneo in Cameroon to deliver two hybrid solar and storage plants totalling 36 MW solar and 20 MW/19 MWh storage.
The plants will supply low-cost, clean and reliable electricity in Maroua and Guider in the Grand-North of Cameroon, and the International Finance Corporation (IFC) is partnering with Scatec’s Release to realise these redeployable projects.
Release, which is a pre-assembled, modular and redeployable solar power and storage system, will further install 7.7 MW of solar plants in Chad to supply clean, renewable energy to five smaller grids owned by ZIZ Energie.
“We are pleased to enter into this agreement with Eneo, which further fuels our journey to make renewable energy more accessible and affordable across growth markets. The deal marks our entry into the Cameroonian market, and we are proud to contribute with a cost-efficient and immediate solution to a cleaner and more stable electricity supply in a region suffering from power shortages caused by droughts limiting the supply of hydropower,” said Scatec CEO Raymond Carlsen.
Release also allows for fast and easy power generation.
Eneo and Release have entered into a flexible contract term that enables Eneo to coordinate the generation capacity with its needs going forward.
The IFC will contribute between 10% and 20% of the project costs of the Cameroon project and will further support the development of Release through project development activities and future financing.
“Access to sustainable, reliable and affordable power is essential to economic recovery and growth. The IFC is proud to partner with Scatec’s Release to help bridge the power gap in Cameroon through a unique solution that enables solar power systems to be quickly deployed to help meet the electricity needs of today while paving the way for more competitive, cleaner and long-term energy sector sustainability in Cameroon.
“This partnership fits with the World Bank Group’s mandate to align its work with the Paris Agreement goals to help our private and public sector partners meet global climate targets,” said IFC Central Africa country manager Sylvain Kakou.
The first power is expected to be delivered towards the end of this year, with the balance to be delivered in phases by mid-2022.
The payback time for Scatec’s investment in the project is in line with previous guidance around the Release business concept.
In Chad, Release is installing 7.7 MW of solar plant capacity across the country, which will support clean energy access to 300 000 people across five provincial cities and their newly built decentralised “metro-grids” developed and operated by local private utility ZIZ Energie.
ZIZ Energie is backed by the Dutch FMO and Energy Access Ventures and has recently received funding from the Development Bank of Central African States (BDEAC), to build grid infrastructure and connections to provide access to electricity for households and industries in the proximity.
Installation of the power plants is expected to be finished during 2022.
The projects in Cameroon and Chad add to Release’s ambitions of providing cost-competitive, high-quality and redeployable renewable energy solutions with a unique financing model to countries and consumers that are hit hardest by the impact of climate change.