Scatec, a renewable energy solutions provider, signed an agreement with Globeleq, an independent power producer, to sell its 52.5% equity share in the 40 MW Mocuba solar power project in Mozambique for $8.5 million (NOK 85 million).
The Mocuba solar power plant is located in the Zambézia Province of Mozambique and was commissioned in August 2019. The project has an annual production of approximately 75 GWh and holds a 25-year PPA with the state-owned utility, EDM.
The transaction is expected to generate a net accounting gain of approximately $4 million on a consolidated basis and $3 million on a proportionate basis. The transaction is subject to the customary consents and is expected to close in the first half of 2024.
“This transaction aligns with our strategy to optimize our portfolio, including divesting smaller assets in non-focus markets. The sale will release capacity for our focus markets and capital for new investments in renewable energy. We are very pleased to secure a value accretive transaction and are confident that Globeleq will be a solid asset owner going forward,” says Scatec CEO Terje Pilskog.
According to Mercom’s recently released 1H and Q2 2023 Solar Funding and M&A report, there were 116 project acquisitions for 25.5 GW of solar projects in 1H 2023 compared to 148 project acquisitions totaling 37.8 GW in 1H 2022. Hive Energy, a solar project developer, recently signed an agreement with GreenIT, the joint venture between Plenitude and CDP Equity, to sell four solar projects with a total capacity of 200 MW. The financial terms of the transaction were not disclosed. The new projects will be developed in Apulia, Sicily, and Lazio using agri-voltaic technology, which involves installing raised structures to achieve synergy between agriculture and renewable energy production.