Tuesday 6 September 2022, Lilongwe. The Government of Malawi (GOM), IFC, Scatec and EDF are today signing a binding commercial Agreement to undertake the co-development of the Mpatamanga hydropower project.
The agreement, signed under Malawi’s Public-Private Partnership framework, concludes the selection process undertaken by the Government of Malawi to competitively select a private sector partner to finance, build, and operate the Mpatamanga hydropower plant. Today’s signing officially awards the role of project lead developer to a consortium composed of Scatec and EDF.
IFC worked closely with the Government of Malawi to support the early-stage project development and provided funding for activities that allowed the government to launch the competitive tender process.
Located on the Shire River, the 350-megawatt (MW) facility will be a first-of-its-kind in Malawi. The generation facility is composed of two plants – a 309 MW peaking plant and a 41 MW downstream plant. The project is expected to contribute to reducing energy shortages and enhancing energy security in Malawi. The 309 MW plant with its reservoir storage is designed to provide much needed energy during peak demand hours of the day and overall grid stability with its ability to ramp up or down production to meet actual demand.
Scatec, and its venture partners British International Investment (BII) and Norfund, and EDF are majority shareholders in the project and will own 55% of the project, split equally between them. EDF will own 27.5%, while Scatec has an ownership of 14%, and the venture partners the remaining 13.5%. The Government of Malawi will own 30%, and IFC 15% of the total project shareholding.
Hydropower can play a critical role in Africa’s renewable energy development. Mpatamanga will deliver electricity to approximately two million people and save 520,000 tons of CO2 emissions per year.
“The 350 MW Mpatamanga Hydropower Project will not only double the installed capacity of hydropower in Malawi, but also improve the power supply security, provide opportunities for increased renewable energy generation capacity in the country and contribute to the controlling of the flow of the Shire River downstream the power plant. The GOM is indebted to its Partners in achieving this milestone which is a major step in the development of this Project”, says Minister of Energy in Malawi, Honourable Ibrahim Matola.
“IFC supports the Government of Malawi’s goal to accelerate access to affordable clean energy. The Mpatamanga hydropower plant has the potential to grow Malawi’s electricity infrastructure and connect thousands of rural and remote households while also spurring green, inclusive, and resilient growth in the country,” said Jumoke Jagun-Dokunmu, IFC Regional Director for Eastern Africa.
“This is a significant development in the realisation of the Mpatamanga project. We are excited to build on our hydro portfolio in Africa – and are proud to have finalised development plans alongside our partners. The country of Malawi will receive a significant investment into its power sector, which in turn will stand to benefit a major portion of the nation’s population. We look forward to reaching further development milestones for this project – and contributing to Africa’s renewable energy journey,” says Scatec CEO Terje Pilskog.
“We are proud to contribute to Mpatamanga project which is a great opportunity to bring our technical expertise in hydropower and our strong environmental and social commitment in favor of local communities and biodiversity. The signing of this partnership strengthens EDF's position in Africa, a strategic region for our development. This competitive project will significantly enhance the access to electricity in Malawi and is fully in line with EDF’s ambition to build a net zero energy future with electricity and innovative solutions that drive economic development.” says Béatrice Buffon EDF Group Senior Executive Vice-President, International Division.
The partners will work extensively with all stakeholders and support project implementation, building on EDF’s and Scatec’s strong ESG track-record in development of hydropower projects across the globe, in alignment with IFC's environmental and social standards.
For further information, please contact:
For analysts and investors: Andreas Austrell, VP Investor Relations, andreas.austrell@scatec.com
For media: Stian Karlsen, Communications Manager, stian.karlsen@scatec.com
About Scatec
Scatec is a leading renewable energy solutions provider, accelerating access to reliable and affordable clean energy in high growth markets. As a long-term player, we develop, build, own and operate renewable energy plants, with 4.6 GW in operation and under construction across four continents today. We are committed to grow our renewable energy capacity, delivered by our 700 passionate employees and partners who are driven by a common vision of ‘Improving our Future’. Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SCATC’. To learn more, visit www.scatec.com or connect with us on LinkedIn.
Norfund and BII now together hold a 49% stake in Scatec’s African hydropower portfolio
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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About EDF
As a major player in energy transition, the EDF Group is an integrated energy company active in all businesses: generation, transmission, distribution, energy trading, energy sales and energy services. EDF group is a world leader in low-carbon energy, having developed a diverse production mix based mainly on nuclear and renewable energy (including hydropower). It is also investing in new technologies to support energy transition. EDF’s raison d’être is to build a net zero energy future with electricity and innovative solutions and services, to help save the planet and drive well-being and economic development. The Group is involved in supplying energy and services to approximately 38. 5 million customers (1), of whom 29.3 million in France (2). It generated consolidated sales of €84.5 billion in 2020. EDF is listed on the Paris Stock Exchange.
(1) Since 2018, customers are counted per delivery site. A customer can have two delivery points: one for electricity and another one for gas. (2) Including ÉS (Électricité de Strasbourg).
Follow EDF Group: www.edf.fr/en/
