Scatec Solar bags funds for one Malaysian project, completes another

Norway’s Scatec Solar ASA (OSL:SSO) today announced it has closed financing for one solar power plant in Malaysia and that it has reached the commercial operation of another.

The Norwegian company and asset manager Fumase (Malaysia) Sdn Bhd have secured a non-recourse project finance facility from BNP Paribas SA (EPA:BNP) for the 47-MWp Redsol project in the northwestern part of the country. The total investment is estimated at USD 47 million (EUR 41m). The bank loan will cover 73% of the project cost, while Scatec Solar will provide all of the equity.

The particular project was awarded in Malaysia’s second large-scale solar tender round held a year ago. It is expected to enter the construction phase “imminently” and achieve grid connection in the fourth quarter of 2019. Scatec Solar will take care of the engineering, procurement and construction (EPC) work as well as of the facility’s operation and maintenance following completion.

Also today, the Norwegian company said it has hooked to the grid the 65-MW Gurun solar power station in Malaysia, which is the first asset within a three-plant portfolio totalling 197 MW. As is the case with the other two solar parks, not yet built, Gunrun will sell its output to Tenaga Nasional Berhad (KLSE:TENAGA) under a 21-year contract between the utility and a ITRAMAS-led consortium that is Scatec’s local partner for the projects.

(USD 1.0 = EUR 0.877)

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