• Release by Scatec offers modular solar to cut Africa’s energy costs

• Leased systems save fuel, add 20-30 MW without heavy financing

• Projects underway in six countries, backed by IFC and World Bank
  

Hans Olav Kvalvaag, CEO of Release by Scatec, a subsidiary of Norway’s Scatec Group, outlined a pragmatic approach to Africa's energy transition, relying on accessible, modular solar solutions. In an interview with the International Finance Corporation (IFC) in late October, Kvalvaag detailed a strategy backed by the IFC, MIGA, and Climate Fund Managers to overcome key electrification barriers.

These barriers include the high cost of diesel, weak grids, and financial constraints facing public utilities.

In many African countries, a significant portion of electricity production still relies on thermal generators powered by imported fuel. This drives up electricity costs, which can be three to five times higher than in OECD nations. These expenses deplete foreign currency reserves and hurt local economic competitiveness, while tariffs that fail to cover real costs lead to utility losses, limiting investment capacity. Kvalvaag argues that the widespread adoption of solar power and storage can reverse this trend.

Cost-Effective and Rapid Deployment

The cost of solar energy has dropped by 90% over the past two decades, making it more competitive than thermal solutions in most African countries today.

Release by Scatec’s systems, available for lease over intermediate periods, allow public utilities to quickly add 20 to 30 MW of capacity without needing heavy financing. Each project can generate up to $10 million in annual savings by reducing fuel imports, while also cutting greenhouse gas emissions.

Plants are already operational in Cameroon and South Sudan, with others in preparation for Liberia, Sierra Leone, Chad, and São Tomé and Príncipe. This transitional model, supported by World Bank Group guarantees, serves as a stepping stone toward permanent Independent Power Producer (IPP) projects.

The approach is integrated into Mission 300, the World Bank and African Development Bank (AfDB) initiative aiming to connect 300 million Africans by 2030. It highlights a strategic shift in energy financing and access across the continent, prioritizing modularity, rapid deployment, and investment accessibility.

Abdoullah Diop