Norwegian solar turned renewable energy company Scatec has achieved financial closure for its maiden solar project in Pakistan that it is developing with local partner Nizam Energy. Scatec will hold a 75% stake in the capacity, while Nizam Energy will claim the remaining 25%.
The 150 MW Sukkur Solar Power Project in Sindh province has raised $100 million from a host of lenders including the Dutch development bank FMO providing half of the debt quantum under a credit facility of $39 million. The other half is provided by 3 local commercial lenders—Faysal Bank, Bank of Punjab, and PAK Kuwait Investment—under PKR denominated credit facilities. Credit facilities cover up to 75% of the total project cost, shared Scatec.
The project partners want to start construction on site in H1/2021 with Scatec providing EPC services along with O&M, and asset management services to the projects.
"We are proud to complete financing of our first project in Pakistan together with our partners. The Government plans to increase the share of renewable energy to 30% by 2030 and we look forward to supporting this growth by delivering 305 GWh of clean power annually," said Scatec CEO Raymond Carlsen. "This is enough to cover the electricity needs of about 150,000 households and will contribute to avoid more than 106,000 tonnes of GHG emissions per annum."
Scatec said the partners were awarded the capacity at costs-plus-tariff by the National Energy Power Regulatory Authority (NEPRA) early in 2020.
The Norwegian company had entered an agreement with Nizam Energy in July 2015 to develop 150 MW PV capacity for an initial investment of around $300 million, divided into 3 facilities of 50 MW each. Later in 2017, 3 special purpose vehicles (SPV) formed for the purpose petitioned Pakistani regulator NEPRA to determine a tariff of PKR 6.25 per kWh for these projects (see Scatec 6¢ Tariff Petition For Pakistan Projects).
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