Norwegian renewable energy firm Scatec ASA has divested its 51% stake in hydropower generation assets across multiple African countries to TotalEnergies for a total of USD 167 million. The company stated that the transaction aligns with its strategic objectives, which focus on self-funded growth initiatives and reducing debt.
The Norwegian company owned the assets in a joint venture with development finance institutions Norfund, and the British International Investment (BII). The assets include the 255 MW Bujagali hydropower plant in Uganda, and a development portfolio consisting of the 361 MW Mpatamanga in Malawi and the 206 MW Ruzizi III at the border of Rwanda, DRC, and Burundi.
“We are pleased with closing the transaction to sell our stake in the African hydropower assets to TotalEnergies. The divestment is in line with our strategy to optimise our portfolio and focus the majority of our investments in our core markets and on solar, onshore wind and battery energy storage,” said Scatec CEO Terje Pilskog.
“We are confident that TotalEnergies will be a strong owner going forward. I would especially like to thank the hydropower team that now moves to TotalEnergies for their hard work and dedication over the years,” added Pilskog.
According to Scatec, its Hydro Africa team will be transferred to TotalEnergies in an entity incorporated as SN Power AS as part of the transaction.
In addition, Scatec revealed that the transaction resulted in a proportionate accounting impact of around USD 30 million and a consolidated accounting effect of approximately USD 50 million. The company attributed a significant portion of these effects to foreign currency fluctuations, which will be accounted for in the first quarter of 2025.
“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,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies.
“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 TotalEnergies concluded.
