Norwegian firm Scatec Solar has signed a US$1.166 billion deal to acquire hydropower developer SN Power from Norfund, a major step in its bid to become a global large-scale player in solar, hydro, wind and storage solutions, and an integrator of high-value infrastructure solutions.

The deal will create a combined company with 450 employees, power plants in 14 countries and 3.3GW of plants in operation and under construction. When all plants are in full operation from early 2021, the median annual production is expected to be 4.1 TWh.

“Hydropower and solar PV are complementary technologies, resulting in new project opportunities, for instance floating solar on hydro reservoirs. With this transaction we see great potential in broader project origination and geographical expansion into growth markets in South East Asia and Sub-Sahara Africa,” said Raymond Carlsen, CEO of Scatec Solar. “SN Power adds scale and significant cash flow from operating plants and will raise stakeholder value; benefiting customers, employees, shareholders, business partners and the societies in which we operate.”

“Norfund’s investment in SN Power has contributed to job creation, improved living conditions and avoided carbon emissions. By mobilising private capital in SN Power, we can recycle significant funds for new investments, demonstrating the effectiveness of using development aid to invest in clean energy in developing countries,” added Tellef Thorleifsson, CEO of Norfund.

The binding agreement covers 100% of the shares in SN Power AS from Norfund and includes SN Power’s portfolio of hydropower assets in the Philippines, Laos and Uganda with a total gross capacity of 1.4GW (net 0.5 GW) and gross median production of 6.1TWh (net 1.8 TWh). SN Power also has a project pipeline totaling gross 2.5GW mainly across Asia and Sub-Saharan Africa.

As part of this transaction, the parties will establish a new joint venture for SN Power’s Sub-Saharan Africa hydro assets and to develop the hydropower pipeline in the region. Norfund will retain a 49% stake and Scatec Solar hold 51% in the Joint Venture and Scatec Solar will be the operator.