About
Our integrated business model ensures transactional and operational control throughout the project lifecycle which ensure de-risking of the projects from a financial and operational perspective, while managing health and safety matters including the potential impact on people, communities, and the environment.
This business model includes the development, construction, ownership, and operation of renewable energy plants in emerging markets and the sale of power primarily under long-term power purchase agreements (PPAs). Our approach is to offer the most cost-efficient solution for each project, ranging from a single technology toa combination of integrated renewables technologies.
Development
- Site development & permitting
- System design
- Business case development
- PPA negotiation
During the initial phase of a project, we secure attractive locations, grid connections, licences and permits and enter discussions with potential long-term partners. Based on this, environmental and social impact assessments and studies are performed to ensure that each project meets our strict HSSE standards. We negotiate commercially viable PPAs with potential off-takers and start plant design. All project details are summarised in a business case which is benchmarked against our investment criteria. It is our strong conviction that early-stage development is crucial for sustainable value creation.
We use our experience to structure and integrate all project documents in collaboration with our financing partners to raise equity and predominately non-recourse debt for the project. Further development work, as well as engineering and construction planning, is performed in parallel with readying the project for construction.
Another key task is optimising project cash flows to maximise returns. Once these have been agreed with our financing partners, a final investment decision is made, and the project reaches financial close.
During construction, Scatec typically assumes the role of turn-key engineering, procurement, and construction (EPC) provider for the power plant, dependent on project structure and technology. This ensures full control over risk mitigating actions, costs, quality, and progression as well as maintaining a strong emphasis on health, safety, security, and environmental issues.
Once commissioned, the power plant commences commercial operation and Scatec is often responsible for operations and maintenance and asset management services, with the aim of maximising performance. These services are delivered under long- term service contracts with pre-agreed commercial terms.
As owner of the power plants we ensure that they are operating according to requirements. We also manage stakeholders and report to our lenders, partners and the authorities. We receive annua! dividends based on cash flows generated under the long-term PPAs or through the sale of power in the power market.
During the operating lifetime of a project, we aim to extract additional value through refinancing of the project debt at improved terms, and through asset rotation with recycling of capital into new investments in renewable energy.