Renewable enercy company Scatec ASA has signed an agreement to sell its 51% stake in an African hydropower joint venture to TotalEnergies. This move aligns with Scatec’s strategy to focus on core markets and investments in solar, wind, and battery energy storage.
The sale includes Scatec’s interest in the 255MW Bujagali hydropower plant in Uganda, and development projects such as the 361MW Mpatamanga in Malawi and the 206MW Ruzizi III near Rwanda, DRC, and Burundi. The joint venture was formed in 2021 with Norfund, and British International Investment (BII) joined in 2022.
“Our decision to sell our African hydropower assets is in line with our strategy to focus the largest share of our investments in our core markets and on solar, wind and battery energy storage, while divesting assets in non-focus markets. 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 Terje Pilskog, Scatec CEO. “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,”
Patrick Pouyanné, TotalEnergies Chairman and CEO, added: “This acquisition of renewable hydroelectric assets and projects in Africa reflects our desire to contribute to the continent’s energy transition by bringing electricity to the people of African countries. In particular, we are delighted to be able to become a player in hydro power 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.”
The transaction is subject to approval from stakeholders, including lenders and joint venture partners, and is expected to close in the first half of 2025. Financial details of the transaction will be disclosed upon closing.
