Business

Scatec sells African hydropower assets to TotalEnergies

Scatec sells African hydropower assets to TotalEnergies
Bujagali is a 250 MW run-of-river hydropower plant downstream of Nalubaale (previously Owen Fall) and Kiira hydropower stations. Image credit: Scatec

By Pamela Largue

Renewable energy technology developer Scatec ASA has sold a 51% stake in the African hydropower joint venture with Norfund and British International Investment to TotalEnergies.

Scatec and Norwegian investment fund Norfund established the JV in 2021 as part of the SN Power acquisition to support hydropower activities in Africa. In 2022, British International Investment joined as a co-investor.

TotalEnergies will acquire minority stakes in two projects under development in Rwanda (260 MW) and Malawi (360 MW), as well as a 28.3% stake in the Bujagali hydropower plant currently in operation in Uganda. With a capacity of 250 MW, it covers more than 25% of the country’s peak electricity demand.

The decision to divest its hydropower assets aligns with Scatec’s strategy to focus investments on its core markets, including solar, wind and battery energy storage.

Scatec will use the proceeds from the sale to support its growth plan. The transaction is expected to close in the first half of 2025, at which point the price will be disclosed.

“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,” said Scatec Chief Executive Officer Terje Pilskog. “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.”

To date, TotalEnergies has interests in several hydropower projects with a gross capacity of 3.7 GW worldwide.

TotalEnergies Chairman and CEO Patrick Pouyanné also commented on the purchase: “…We are delighted to be able to become a player in hydropower in Uganda, a country where we are also developing a major oil project. This is another example of TotalEnergies’ ability to implement its multi-energy strategy in oil-producing countries to support them in their energy transition.”

This article was originally published on Power Engineering International.