African renewables drive Scatec's strong growth

From the newsletter

Norwegian energy company Scatec reported a 51% increase in overall revenue in the second quarter of 2025, supported by strong performance across its global portfolio. Projects in the development and construction segment in Egypt, the Philippines, Brazil, Botswana, South Africa and Tunisia generated $92 million, roughly 42% of total revenues.

• These results show how investments in renewables are proving profitable across several African markets. Recent exits by AIIM from three South African projects further reinforce that private equity investors can achieve strong returns in the region’s clean energy sector.

• Scatec has emerged as a major player in Africa’s renewable energy sector, scaling projects to the gigawatt level and breaking previous records. The company is currently constructing a 1 GW solar plant in Egypt, which will be the largest in Africa once completed.

More details

• Scatec continues to demonstrate strong growth with a robust project pipeline totalling 3.2 GW. This includes a substantial backlog across South Africa, Tunisia, Egypt, and Romania. Currently, over 1.7 GW of projects are under construction in key high-growth regions such as Egypt, the Philippines, Brazil, Botswana, South Africa, and Tunisia.

• A key highlight this quarter was the signing of a 25-year, USD-denominated PPA with the Egyptian national utility for a landmark 900 MW onshore wind project. The company also reached financial close on the Obelisk project, a hybrid development combining 1.1 GW of solar power with a 200 MWh battery energy storage system. The funding came from the European Bank for Reconstruction and Development (EBRD), African Development Bank (AfDB), and British International Investment (BII).

• In South Africa, the company was selected as the preferred bidder for the Haru battery energy storage project, a 492 MWh initiative awarded under the third round of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP). Last month, it also secured 846 MW of solar PV capacity, the largest-ever award in South Africa. This solar cluster is estimated to bring investments of $735 million and will provide clean, reliable energy under 20-year PPAs once operational.

• The company has also taken steps to strengthen its financial position, repaying $30 million of corporate debt during the quarter and an additional $85 million after the quarter ended. This move significantly improves its financial flexibility. 

• In addition, Lyra Energy, Scatec's energy aggregation platform, successfully secured its trading licence in South Africa, marking an important step in expanding the company’s market capabilities. This development comes at a pivotal moment as South Africa implements its new Electricity Act, which has unbundled the sector and opened the door for energy players to participate across different segments of the electricity supply chain.

• According to Renewables Rising staffing data, Scatec has been in a hiring phase. Over the past twelve months, the company onboarded at least 172 senior staff, bringing its total workforce in Africa to 516 employees, with many new positions concentrated in the project management segment. Scatec also opened roles in newer segments, such as battery energy storage system engineers. It also added positions in operations and maintenance to support projects reaching completion.

Our take

• Scatec's revenue growth and AIIM’s profitable exits in South Africa confirm that African renewables are bankable. The company is well-positioned to attract new institutional investors and private equity capital, especially as demand for renewable energy grows.

• At the same time, the strong revenue performance gives it the ability to offer competitive compensation, positioning it to attract and retain top talent, including in emerging areas such as battery energy storage systems, where Africa still faces a shortage of skilled professionals.

• Scatec’s experience in delivering large-scale projects gives it a competitive edge when bidding for even bigger opportunities. Its early involvement in building major projects across Africa provides an “early-mover advantage”, positioning the company to secure future bids and solidify its role as a dominant player in Africa’s renewable energy transition.