PROJECT

Projects

Environmental & Social Review Summary

Project Number

46628

Company Name

SCATEC ASA

Date ESRS Disclosed

Mar 13, 2023

Country

Africa Region

Region

Africa

Last Updated Date

Mar 14, 2023

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : Dec 22, 2022
Signed : Feb 8, 2023
Invested : Feb 17, 2023

Sector

Renewable Energy Holding Companies

Industry

Infrastructure

Department

Regional Industry - INF Africa

Project Description

Scatec (“the company” or “the Group” - https://scatec.com/) is a leading global renewable energy developer delivering affordable and clean energy worldwide. As a long-term player, Scatec develops, builds, owns and operates solar, wind and hydro power plants and battery storage solutions. The Company recently acquired SN Power, a leading hydropower developer with all its assets in emerging markets. As of end-2021, Scatec had more than 3.3GW in operations on four continents and 600 employees and a target to achieve 15GW by 2025. The company is headquartered in Oslo, Norway and is listed on the Oslo Stock Exchange since 2014.

 

The proposed investment is for an IFC participation with an amount up to  NOK222 million into Scatec ASA (“Scatec”) Green Bond issuance of NOK1,000 million.

The use of proceeds from this IFC investment will be for two greenfield solar projects (Eligible) which include a number of sub-projects. These include:

(i) Scatec Solar RMI4P Project: This includes three greenfield solar photovoltaic (PV) plus storage power plants that form a part of the South African Risk Mitigation Independent Power Producer Procurement Program (RMI4P). Each plant will have a 50 MW net contracted capacity consisting of a 180 MW solar PV facility (installed capacity) combined with a 75 MW/380 MWh battery energy storage system (BESS). The three contiguous power plants are located on farmland approximately 80 km south of Upington and 20-30 km north-east of Kenhardt within the Kheis Local Municipality, Northern Cape Province, South Africa. The Environmental and Social (E&S) Due Diligence for the sub-projects was undertaken by IFC in April 2021, #45423 Kenhardt 1, #45424 Kenhardt 2, #45425 Kenhardt 3 and an E&S action plan (ESAP) developed which is under implementation.

(ii) Scatec Mendubim Photovoltaic Complex: The project is a greenfield 453MW comprising 13 Photovoltaic Plants located in the municipality of Açu, in the state of Rio Grande do Norte, Brazil. The complex will consist of the Solar Power Plants; the Electric Substation; the Transmission Line; and the Construction Site, comprising a total area of 1,213.2 hectares.

The off-taker for the projects will be the respective state distribution companies in each country where the projects are located. Scatec will be sole EPC-provider to all sub-projects apart from Mendubim where Scatec, Equinor (an international energy company committed to long-term value creation in a low-carbon future, headquartered in in Stavanger, Norway - https://www.equinor.com/) and Hydro Rein, a subsidiary of Hydro Energy https://www.hydro.com/en/energy/renewable-growth/ based in Norway, will be joint EPC-providers.                                   

Overview of IFC's Scope of Review

IFC’s environmental and social (E&S) review of the project was mainly desktop review and a virtual appraisal on July 19, 2022 and included; (i) discussions with Environmental, Social & Governance (ESG) project teams at Scatec; (ii) a review of Scatec’s ESG related policies and procedures including: environmental policy, Health Safety Security and Environment (HSSE) policy, sustainability policy, global HR policy, corporate supply chain and procurement policy, environmental and social impact assessment (ESIA) reports for Mendubim and Environmental Social Due Diligence (ESDD) Reports by IFC developed for RMI4P.   

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan