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Acquisition of leading hydropower player SN Power

Late January 2021, Scatec completed its largest transaction, the USD 1.1 billion acquisition of SN Power from Norfund. The transaction was announced in October 2020 and forms an important part of Scatec’s broadened growth strategy, to become a global player in solar, hydro, wind and storage solutions, and an integrator of high-value infrastructure solutions.

“In the coming years, we will grow the company whilst retaining our fast-moving and dynamic DNA. Competence development and building new technology capabilities are key strategic pillars to succeed.”

With this transaction, Scatec sees great potential in broader project origination and geographical expansion into growth markets in Asia, Africa and Latin America. SN Power adds scale, hydropower competence and significant cash flow from operating plants. The companies are also a strong cultural fit, both rooted in Norway’s industrial tradition and ambitious frontrunners in renewable energy in emerging markets.

Scatec and SN Power have a unique and complementary portfolio of assets, geographical footprint and capabilities, and have access to a significant project pipeline of almost 10 GW across solar, hydro, wind and storage. The new company has 485 employees¹, power plants in 14 countries and 3.3 GW of plants in operation or under construction. When all plants are in full operation from first half of 2021, the expected median annual production is 4.1 TWh.

Expanding competence and organisation

In the coming years, we will grow the company whilst retaining our fast-moving and dynamic DNA. Competence development and building new technology capabilities are key strategic pillars to succeed. To fully integrate former SN Power, we are conducting a thorough global onboarding process and various culture development integration activities. In addition, we are broadening our interactive gamified learning portfolio and external learning sources for all, as well as increasing leadership development initiatives and ensuring clear competence development goals for everyone.

Compelling strategic benefits

Hydropower has inherently attractive characteristics including storage, perpetual asset life, and low operational risk and gearing. Further, hydropower and solar PV are complementary technologies, resulting in new project opportunities, for instance the installation of floating solar on existing hydro reservoirs and thereby also capturing hybridisation benefits.

Floating solar is becoming mainstream technology and has several benefits such as attractive cost, reduced environmental and social impact, utilisati

on of existing infrastructure when combined with hydropower and it benefits from positive cooling and evaporation effects. Scatec already has a test facility on the Magat dam in the Philippines and there is significant potential for floating solar installations on our existing hydropower facilities. Hybridisation of solar and hydropower allows for sharing of infrastructure to reduce cost and the conversion of incidental power to firm power with a higher market value. If solar panels covered 1% of the surface area of the hydro reservoirs in Africa, it would represent a doubling compared to the existing hydropower capacity and an increase in electricity generation from these dams by 50%².

The technological and geographical diversification further enhances cash flow resilience and increases optionality with respect to profitable growth. It also leverages the long-standing emerging market expertise gained through hydropower production and Scatec’s solid Engineering, Procurement and Construction (EPC) track record. With SN Power, Scatec also strengthen its position as a frontrunner in renewable energy and as a partner for governments and other stakeholders.

SN Power’s 2020 results

In 2020 SN Power reached revenues of NOK 1,562 million (1,766), EBITDA of NOK 1,092 million (1,149) and Cash Flow to Equity of NOK 477 million (541), measured on Scatec’s proportionate basis. The performance of 2020 is influenced by reduced water in-flow in the first nine months of the year, combined with COVID-19 impact on power demand and prices in the Philippines. In 2020 net power production reached 1.4 TWh compared to the median net annual production of 1.8 TWh.


The acquisition is fully funded through cash available and the following facilities; a USD 200 million vendor note, a USD 150 million green term loan, and a USD 400 million acquisition finance facility from Nordea, DNB and Swedbank. The acquisition finance is partially refinanced by the proceeds from the EUR 250 million bond issue announced in February 2021. Refer to note 30 Subsequent events for further details about the acquisition.


¹ At date of transaction close
² Source: Elsevier, Renewable Energy volume 169 – Assessment of floating solar photovoltaics potential in existing hydropower reservoirs in Africa