Our integrated business model
Our business model ensures control throughout the project lifecycle, de-risking projects financially and operationally while managing health and safety impacts on people and the environment. It includes developing, constructing, owning, and operating renewable energy plants in emerging markets, selling power under long-term agreements.
Development
Value uplift from early-stage development to ready-to-build projects
- Site development & permitting
- System design
- Business case development
- PPA negotiation
During the initial phase of a project, we secure attractive locations, grid connections, licences and permits and enter discussions with potential long-term partners. Based on this, environmental and social impact assessments and studies are performed to ensure that each project meets our strict HSSE standards. We negotiate commercially viable PPAs with potential off-takers and start plant design. All project details are summarised in a business case which is benchmarked against our investment criteria. It is our strong conviction that early-stage development is crucial for sustainable value creation.
Structuring & financing
- Debt/Equity structuring
- Due diligence
We use our experience to structure and integrate all project documents in collaboration with our financing partners to raise equity and predominately non-recourse debt for the project. Further development work, as well as engineering and construction planning, is performed in parallel with readying the project for construction.
Another key task is optimising project cash flows to maximise returns. Once these have been agreed with our financing partners, a final investment decision is made, and the project reaches financial close.
Construction
- Engineering and procurement
- Construction management
During construction, Scatec typically assumes the role of turn-key engineering, procurement, and construction (EPC) provider for the power plant, dependent on project structure and technology. This ensures full control over risk mitigating actions, costs, quality, and progression as well as maintaining a strong emphasis on health, safety, security, and environmental issues.
Operations
- Maximise performance and availability
- Maintenance and repair
Once commissioned, the power plant commences commercial operation and Scatec is often responsible for operations and maintenance and asset management services, with the aim of maximising performance. These services are delivered under long- term service contracts with pre-agreed commercial terms.
Ownership
- Asset management
- Financial optimisation
As owner of the power plants we ensure that they are operating according to requirements. We also manage stakeholders and report to our lenders, partners and the authorities. We receive annua! dividends based on cash flows generated under the long-term PPAs or through the sale of power in the power market.
Portfolio optimisation
- Enhance project returns
- Capital recycling and refinancing
During the operating lifetime of a project, we aim to extract additional value through refinancing of the project debt at improved terms, and through asset rotation with recycling of capital into new investments in renewable energy.