Scatec Solar will use this IFC assistance to expand its operations in Chad, where 11% of the population has access to electricity, and in Cameroon, where electricity supply is irregular. The renewable energy producer also plans to extend its solar solutions to several other sub-Saharan countries.
The International Finance Corporation (IFC) announced on December 13, 2023, the signing of a $100 million loan agreement with the Norwegian solar energy producer Scatec Solar.
Half of this financing comes from IFC’s own account, and the other half is from a blended finance provided by the institution’s partners. A risk-sharing mechanism of $65 million will also be granted to Scatec Solar to ensure payments from counterparts leasing solar equipment and batteries.
Through this financial package consisting of loans and guarantees, the Norwegian company will develop and lease solar energy installations and equipment to African governments and public services. The Oslo Stock Exchange-listed energy producer will initially deploy in Chad, where a solar battery leasing contract has already been concluded with the authorities, adding 35 MW of electricity to the national grid.
Source : Ecofin