As a true integrated player Scatec capture value in the full value chain in the downstream renewables market. From early origination to an operating asset, Scatec develops a projects either from green field or by acquisition of single or portfolios of partly or fully developed projects.
Once secured or acquired, Scatec structures the debt and equity finance, then construct the plants, and finally operate and manage the assets.
A key success factor for Scatec lies in its partnering model. We seek partnerships on the origination side, the debt side and the co-investor side. We believe the model ads significant value in terms of local partners understanding the local market, professional lenders ensuring that the entire structure is vetted, whilst co-investors reduces risk and brings added financial capacities. Although Scatec highly values its partners, we always seek operational and financial control of the power plants ensuring that the integrated model is applied to ensure maximum value creation.
The core business of Scatec is to sell power, from plants developed, financed and constructed by it, under long term Power Purchase Agreements (PPAs). Construction commences once debt and equity finance is secured, and the stable cash flows secured by the PPAs with fixed inflation indexed power tariffs allows from completive non-recourse project finance due to strong, stable and long-term cash flows.
- Site development & permitting
- System design
- Business case development
- PPA negotiation
Project development includes a number of interlinked activities including site identification, securing land lease agreements, obtaining required licences and permits, preliminary plant design, development of business case, securing grid connection and negotiation of the Power Purchase Agreement (PPA) with off-taker. The power off-takers are normally state-owned utilities.
- Debt/Equity structuring
- Due diligence
Financing includes structuring of debt and equity for funding the investments of the solar power plants. In the markets Scatec operates, the power plants are normally financed through non-recourse project finance provided by multilateral development banks (e.g. IFC/World Bank, EBRD). Scatec Solar seeks operational and financial control of the power plants it develops but will often enter into equity partnerships prior to construction start
- Engineering and procurement
- Construction management
Construction includes engineering & design, procurement of key components (e.g. solar panels, inverters, substructures), construction & supplier management and quality assurance. Scatec acts a turn-key engineering, procurement & construction (EPC) provider to the project company owning the solar power plant. Scatec believes the ability to offer EPC services to own developed projects creates a competitive advantage – especially in emerging solar markets.
- Maximise performance and availability
- Maintenance and repair
Operations includes monitoring, maintenance and repair of the solar power plants to maximize performance and availability. Scatec has a centralised operating centre that monitors the power plant portfolio 24/7 and facilitates efficient incident management, resource dispatchment and data processing to enable learning and process improvements across the plants.
- Asset management
- Financial optimisation
Asset Ownership includes daily operation of the power plant company including financial and management reporting, statutory reporting as well as managing relations to lenders and other stakeholders.