During 2023 Release demonstrated the strength of its business model and secured USD 202 million in debt and equity funding and USD 65 million in guarantees through transactions involving our esteemed partners, Climate Fund Managers and IFC.

These transactions establish Release as a strong and independent platform and will contribute to accelerate the growth ambitions for the flexible leasing solution of pre-assembled and modular solar and battery equipment Release offers.

We have secured further growth for 2024, with construction start of 273 MW in South Africa and 60 MW in Botswana, representing NOK 350 million in equity investments and D&C revenues of NOK 2.5 billion. Additionally, we were awarded South Africa’s first battery project of 103 MW/ 412 MWh and a subsequent expansion in Botswana to 120 MW.

Our solid pipeline of 11.1 GW across technologies, have been high-graded in 2023 with focus on locations, timelines, maturity and value creation. Less attractive projects, mainly within offshore wind and hydro, have been taken out and new attractive solar projects in core regions have been added. Consequently, the share of solar has increased to 59%, and the share of projects in our focus markets to above 90%.

In first quarter 2023, Scatec’s climate targets were approved by the Science Based Target Initiative.

During the year, Scatec developed a climate roadmap for its path to net zero.

The roadmap highlights six key emissions reduction initiatives that the Company will pursue towards 2040.

In 2024, key focus will be on electric vehicles and charging stations, SF6¹ and engagement with strategic suppliers on climate matters.

^{1) SF6 gas (Sulfur hexafluoride) is a greenhouse gas that is mainly used in medium and high-voltage switchgears in the electric power grid}

We have sharpened our strategy, focusing on solar, wind and batteries to capitalise on a significant drop in solar panel prices, batteries, and transportation costs. We have aligned our growth rate with internal funding capacity, targeting NOK 500-750 million of annual equity investments in renewable energy. We will stay committed to deliver attractive returns of 1.2 times cost of equity, D&C gross margins of 8-10%, and O&M margins of 25-30%.

Scatec holds top ESG ratings from leading global ESG rating agencies actively covering Scatec, including:

• Scored A+ grade in Position Green’s annual analysis of ESG reporting – among the top-rated companies in Scandinavia
• Placed on Carbon Disclosure Project’s (CDP) A-List with top score, in corporate transparency and climate change performance
• Low risk rating from Sustainalytics – top score in utilities industry group

In line with our strategy, we seek to optimise our portfolio through capital recycling and consolidating the portfolio. In 2023, we embarked on this strategic pillar, and successfully divested four solar power plants in South Africa, Mozambique, Argentina and Rwanda.

In total, we secured NOK 2.7 billion of new growth funding in 2023, including the above-mentioned divestments and the partnerships established for the Release platform.