In a bold move that reshapes the renewable energy landscape, Scatec ASA has finalized the sale of its African hydropower assets to TotalEnergies. This strategic divestment marks a significant shift for Scatec as it refocuses its efforts on solar, wind, and energy storage technologies.
A Strategic Shift for Scatec
Scatec’s decision to sell its 51% stake in the African hydropower joint venture—partnered with Norfund and British International Investment (BII)—comes as part of its broader strategy to streamline its portfolio. The $167 million deal, based on a December 2023 valuation, includes the operational 255 MW Bujagali hydropower plant in Uganda and a development portfolio featuring the 361 MW Mpatamanga project in Malawi and the 206 MW Ruzizi III project, which spans Rwanda, the Democratic Republic of Congo, and Burundi.
The net proceeds of $161 million will bolster Scatec’s self-funded growth initiatives and support corporate-level debt repayments. Scatec CEO Terje Pilskog emphasized the company’s commitment to its core markets, stating, “This divestment aligns with our strategy to focus on solar, onshore wind, and battery energy storage. We’re confident TotalEnergies will be a strong steward of these assets.”
TotalEnergies’ Renewable Ambitions
TotalEnergies’ acquisition of Scatec’s hydropower assets underscores its growing commitment to renewable energy. The deal includes the transfer of Scatec’s Hydro Africa team to TotalEnergies under the newly incorporated entity, SN Power AS. This move not only expands TotalEnergies’ renewable portfolio but also strengthens its presence in Africa’s burgeoning energy sector.
The transaction is expected to have a significant accounting impact, with a proportionate effect of $30 million and a consolidated effect of $50 million, largely driven by foreign currency fluctuations. These effects will be recognized in the first quarter of 2025.
What This Means for Africa’s Energy Future
The sale of these hydropower assets signals a new chapter for renewable energy in Africa. With TotalEnergies at the helm, the Bujagali, Mpatamanga, and Ruzizi III projects are poised for further development, potentially unlocking new opportunities for clean energy across the continent.
As Scatec pivots toward solar and wind, and TotalEnergies doubles down on hydropower, the deal highlights the dynamic nature of the global renewable energy market. Both companies are betting big on a sustainable future—but with different strategies.
