Scatec signs 15-year CfD contract for Romanian solar portfolio

Contract Details - Scatec ASA signed a 15-year Contract-for-Difference (CfD) with Opcom, covering approximately 70% of the estimated production from a 190 MW solar portfolio, with the remaining production sold in the Romanian wholesale electricity market [1] - The CfD was awarded in the first CfD auction in Romania funded by the EU Modernisation Fund, which aims to support selected member states in meeting their energy targets [2] - Approximately 1.5 GW of solar PV and onshore wind was awarded in this first round in Romania, with the remainder of a total auction plan of 5 GW expected to be awarded in 2025 [2] Project Development - Scatec will advance its first project portfolio in Romania, developed in collaboration with local partner Defic Globe, located in Dolj and Olt counties in southern Romania [3] - The estimated total capital expenditure (capex) for the solar plant is EUR 140 million, to be financed by non-recourse financing and equity from Scatec and partners, with a targeted leverage of approximately 75% [5] - Financial close and construction start for the solar plants is expected in the second half of 2025 [5] Ownership and Operations - Scatec will have a 65% ownership stake in the solar plants and will procure key components for the project, comprising about 30% of total capex [6] - Defic Globe will have a 35% ownership stake and provide turnkey EPC services, while Scatec will provide Operations & Maintenance (O&M) and Asset Management (AM) services for the portfolio [6] Market and Strategic Insights - Romania has attractive market fundamentals, a clear energy transition agenda, and established offtake routes through CfD auctions, corporate PPAs, and a mature electricity market [3] - Scatec's CEO highlighted the company's ability to apply its global track record in renewable energy auctions to new markets like Romania, leveraging supportive market fundamentals and competitive strengths [4] Company Background - Scatec is a leading renewable energy solutions provider with 5 GW in operation and under construction across five continents, committed to growing its renewable energy capacity [7] - Defic Globe is an independent power producer (IPP) and EPC contractor, dedicated to driving the transition to reliable and affordable clean energy, with expertise in renewable energy projects and battery energy storage systems [8]