Government approval of Scatec’s RMIPPP project in South Africa delayed - 2021 growth target will not be reached
Oslo, 1 October 2021: Scatec has been notified by the IPP Office in South Africa that the government approval process for the RMIPP programme has been delayed and that timing of financial close has been moved to the end of January 2022. Construction start for Scatec’s 540 MW + storage project is therefore expected in the first quarter 2022.
The renewable industry is currently affected by cost inflation and supply chain disruptions, which to a varying degree affects Scatec’s project backlog and pipeline. Scatec has decided not to move forward with backlog projects totaling 166 MW in Brazil and Ukraine, as projected margins and returns fall below the Company’s hurdle rates. The company expects total impairment of NOK 40-50 million of development cost related to the two projects, which will be charged to the Income Statement for the third quarter 2021.
On this basis, Scatec will not reach the target of 5.9 GW in operation or under construction by the end of 2021, and the project backlog has been lowered from 2,081 MW to 1,915 MW.
The target to reach 15 GW in operation or under construction by the end of 2025 remains in place.
“It is disappointing not to reach the 2021 growth target, but with our track record and solid pipeline we will continue to deliver growth and long-term value. South Africa is our home market, and we are looking forward to delivering much needed electricity under the RMIPP programme”, says CEO Raymond Carlsen.
For further information, please contact:
Andreas Austrell, VP IR
Tel: +47 974 38 686,
Mikkel Tørud, CFO
Tel: +47 976 99 144,
About Scatec
Scatec is a leading renewable power producer, delivering affordable and clean energy worldwide. As a long- term player, Scatec develops, builds, owns and operates solar, wind and hydro power plants and storage solutions. Scatec has more than 3.5 GW in operation and under construction on four continents and more than 500 employees. The company is targeting 15 GW capacity in operation or under construction by the end of 2025. Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol 'SCATC'. To learn more, visit or connect with us on .
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
This stock exchange announcement was published by Kine Aaltvedt, Communication & IR Coordinator at Scatec ASA, on 1 October 2021 at 08:00 CEST
