Scatec Solar partners to build 200 MW PV in Malaysia

Scatec Solar partners to build 200 MW PV in Malaysia

Oslo, December 13, 2016: Scatec Solar has entered the Malaysian large-scale
solar energy market by joining forces with a local ItraMAS-led consortium
that has signed three 21-year Power Purchase Agreements (PPAs) with the
country's largest electricity utility, Tenaga Nasional Berhad (TNB).

The partnership covers three solar projects totaling nearly 200 MW and
involves a total investment of close to USD 300 million. Located in Merchang
in the north, Jasin in the south and Gurun in the west of Peninsular
Malaysia, the three photovoltaic solar parks cover more than 200 acres each.

Scatec Solar expects to invest about USD 60 million through preference
shares partly convertible to a 49% equity ownership in the projects. The
investment expects to provide long term stable cash flows and to meet Scatec
Solar's investment hurdle rates. The agreement with the Malaysian consortium
includes Scatec Solar acting in its well-known integrated role, including
undertaking the turnkey EPC for the projects.

"This is a landmark opportunity to bring our wide-ranging expertise to
realize the largest solar energy portfolio in South East Asia. For Scatec
Solar and our partners, this is a stepping stone to enter one of the most
dynamic and fast growing regions of the world'' said Raymond Carlsen, CEO of
Scatec Solar.

Headquartered in Kuala Lumpur, ItraMAS, a Malaysian LED lighting and traffic
management and construction engineering company, is the lead sponsor of the
three solar projects and signed the PPA on behalf of the local consortium
that includes two other Malaysian companies, Maltech and Cam Lite.

CIMB, Malaysia's second largest commercial bank, has been appointed to
arrange the non-recourse project debt financing for the three projects. All
development, financing and project implementation preparatory activities are
currently underway to reach timely financial close with the construction
expected to begin immediately thereafter.

Welcoming the co-development of the projects by Scatec Solar, Choo Boo Lee,
CEO of ItraMAS said ''This is a significant achievement for Malaysia and the
solar industry in the region as these projects will help develop local
supply chains and uplift local communities''. Malaysia is already a major
manufacturing hub for Chinese solar energy equipment.

The three solar projects are expected to generate 285,000 MWh of electricity
per year. The clean solar electricity will avoid 210,000 tons of carbon
emissions per year, taking Malaysia closer to achieving its promised
emission cuts under the Paris Climate Agreement.

Scatec Solar is a leading developer and owner of large scale solar in
Africa, Europe, Middle East and the Americas. Over the last few weeks the
company has secured a 20 year PPA for 150 MW in Brazil and a 25 year PPA for
a 40 MW solar plant in Mozambique. With the announcement of the partnership
in Malaysia, Scatec Solar's project backlog now stands at 731 MW, and is
well on track to reach its target of having 1.3 - 1.5 GW in operation and
under construction by the end of 2018.

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com