Scatec ASA has signed an agreement with TotalEnergies to sell its 51 percent stake in the African hydropower joint venture with Norfund and British International Investment (BII), in line with the company’s strategy. The proceeds from the transaction will be used to support Scatec’s self-funded growth plan.
The sale covers Scatec’s indirect interest held through SN Power of the operating 255 MW Bujagali hydropower plant in Uganda, and a development portfolio consisting of the 361 MW Mpatamanga in Malawi, and the 206 MW Ruzizi III at the border of Rwanda, DRC, and Burundi. The joint venture was established in 2021 between Scatec and Norfund, the Norwegian investment fund for business activities in developing countries, as part of the SN Power acquisition. In 2022, BII joined as a co-investor. The transaction supports the business continuity of the hydropower activities on the continent, including commitments to projects and stakeholders.
Our decision to sell our African hydropower assets is in line with our strategy to focus the largest share of our investments in our core markets and on solar, wind and battery energy storage, while divesting assets in non-focus markets. We are pleased to announce today’s transaction, as we believe TotalEnergies will be a strong asset owner going forward, with the ability to further develop the projects and contribute to the energy transition in Africa. We would like to thank the entire hydropower team for their hard work and dedication over the years, you have made a significant impact. In addition, our gratitude goes to our joint venture partners, host governments, and lenders for the support since 2020
Terje Pilskog, Scatec CEO