IFC provides $100M financing package to Release by Scatec for modular solar PV and battery storage solutions in Africa
Type: Financing · Technology: Hybrid · Capacity: 71 MW · Value: $100M · Announced: 2023-12-13
IFC provided a $100M financing package to Release by Scatec, enabling the deployment of modular solar PV and battery storage solutions across Africa. This facility will scale ready-.
Analysis
The $100 million financing package from IFC and its partners will add 71 MW of modular solar PV and battery storage capacity to national grids in Chad and Cameroon, directly addressing erratic power supply and high tariffs. This blended finance structure, with $50 million from IFC's own account and $50 million from programs like IDA PSW and Canada-IFC, demonstrates a concerted effort to de-risk renewable energy investments in challenging African markets. Release by Scatec, a Scatec ASA entity, is deploying these hybrid solutions to provide cost-competitive, reliable electricity, aiming to reduce the region's carbon footprint. The initiative's focus on modularity suggests a strategic approach to rapid and scalable grid integration.
Key points
- The $100 million financing package is evenly split between IFC's own account ($50 million) and blended finance ($50 million) from multiple programs.
- The initiative will add 71 MW of hybrid capacity, specifically 35 MW in Chad and 36 MW in Cameroon, to national grids.
- Key blended finance contributors include the International Development Association's Private Sector Window (IDA PSW) Blended Finance Facility.
- Release by Scatec, a provider of modular solar PV and battery storage, is the borrower, backed by renewable energy solutions provider Scatec ASA.
Counterparties
- International Development Association's Private Sector Window (IDA PSW) Blended Finance Facility (Lender)
- Release by Scatec (Borrower)
- IFC (International Finance Corporation) (Lender)
- Finland-IFC Blended Finance for Climate Program (Lender)
- Scatec ASA (Investor)
- Canada-IFC Renewable Energy Program for Africa (Lender)
- Canada-IFC Blended Climate Finance Program (Lender)