Scatec Reaches Financial Close on 150 MW Solar Project in Pakistan

Scatec and its local partner Nizam Energy have announced the successful financial close for the 150 MW Sukkur solar power project in Pakistan

Scatec and its local partner Nizam Energy have announced the successful financial close for the 150 MW Sukkur solar power project with a total investment of about USD 100 million. Scatec’s first solar project in Pakistan.

FMO, the Dutch development bank, Faysal Bank, Bank of Punjab and PAK Kuwait Investment have signed credit agreements for the non-recourse debt financing of the Sukkur project. Half of the debt quantum is provided by FMO under a credit facility of USD 39 million and the other half by the three local commercial lenders under PKR denominated credit facilities of an aggregated PKR 2.2 billion. The credit facilities cover up to 75 percent of the total project cost.

“We are proud to complete financing of our first project in Pakistan together with our partners. The Government plans to increase the share of renewable energy to 30 percent by 2030 and we look forward to supporting this growth by delivering 305 GWh of clean power annually. This is enough to cover the electricity needs of about 150,000 households and will contribute to avoid more than 106,000 tonnes of GHG emissions per annum”, said Raymond Carlsen, CEO of Scatec.

The Sukkur project portfolio located in the province Sindh, southeast in Pakistan, was awarded a “costs plus tariff” by the National Energy Power Regulatory Authority (NEPRA) early in 2020. 

Scatec and Nizam Energy are now working to start construction within the first half of 2021. Scatec will provide engineering, procurement and construction (EPC), and provide Operation & Maintenance, as well as Asset Management Services to the power plants. Scatec will hold 75 percent of the equity, with Nizam Energy holding the remaining 25 percent.

In May 2020, the firm (then Scatec Solar) had announced that it had, along with its partners, grid-connected and started commercial operations of the 54 MW Boguslav solar project in the Kyiv region of Ukraine. And with that, the firm has stated that it has passed the milestone of 1.5 GW solar capacity in operation globally.  In addition to operational assets, the firm also stated that a portfolio of 399 MW capacity is under construction, of which 235 MW is in Ukraine.