Norwegian renewable energy developer Scatec has closed a $102m funding round from Climate Fund Managers (CFM) to support Release, a platform to serve mining and utilities markets.
The funds will expedite Release’s growth as a separate platform.
Launched by Scatec in 2019, Release provides flexible and mobile solutions for leasing pre-assembled and modular solar and battery equipment.
It provides a new approach towards distributed solar PV and battery energy storage systems (BESS) to deliver simple and on-demand renewable energy for mining and utility projects.
The system offers modular solutions, beginning with 5MW blocks that include pre-assembled and containerised moveable trackers and storage units.
They can be deployed using lease agreements that last for at least five years and up to 15 years.
CFM will provide both equity and debt funding for Release under the agreement, which was announced in July 2023.
CFM will allocate $55m (€52.08m) of the total $102m towards acquiring a 32% stake in Release. Scatec will hold the remaining 68% ($47m) interest as shareholder loans, with a portion on concessional terms.
CFM is a fund manager supported by FMO, the Dutch entrepreneurial development bank, and Sanlam Infraworks, part of the Sanlam Group of South Africa.
Scatec CEO and Release chair Terje Pilskog stated: “We welcome Climate Fund Managers as a strategic partner to fuel the solid growth journey of the Release platform. With this collaboration, we are not only raising funds; we are sharing the future of renewable energy solutions. Release is offering a unique solution in a rapidly growing market segment that requires a different business model than Scatec’s larger-scale project business.
“We are excited to reach this key strategic milestone for Release. It is testimony to Release’s unique business model and Scatec’s ability to attract top climate-oriented fund managers on a mission to invest in value accretive projects in emerging economies.”
According to Scatec, Release is gaining a foothold, particularly in the African utilities market.
It has projects operating and under construction in countries including Cameroon, South Africa, Mexico and South Sudan with a total capacity of 47MW in solar and 20 megawatt-hours in BESS.
