TotalEnergies expands African renewables with Scatec hydropower deal TotalEnergies has agreed to acquire Scatec ASA’s 51% stake in an African hydropower joint venture, bolstering its renewable energy portfolio on the continent.
The deal aligns with both companies’ strategic goals in the evolving energy landscape. The deal gives TotalEnergies a 28.3% stake in Uganda’s 250-megawatts Bujagali hydropower plant, which supplies over 25% of the country’s peak electricity demand. The Freench energy giant will also take minority stakes in two projects under development: a 260 MW facility in Rwanda and a 360 MW project in Malawi.
TotalEnergies will acquire these assets through the purchase of SN Power, Scatec’s subsidiary. The joint venture, established in 2021 with Norfund and later joined by British International Investment, aims to support hydropower activities across Africa.
“This acquisition of renewable hydroelectric assets and projects in Africa reflects our desire to contribute to the continent’s energy transition by bringing electricity to the people of African countries,” TotalEnergies Chairman and CEO, Patrick Pouyanné, said in a company statement.
“In particular, we are delighted to be able to become a player in hydro power in Uganda, a country where we are also developing a major oil project. This is another example of TotalEnergies’ ability to implement its multi-energy strategy in oil-producing countries to support them in their energy transition.”
For Scatec, the divestment supports its strategy to focus on core markets and technologies.
“We believe TotalEnergies will be a strong asset owner going forward, with the ability to further develop the projects and contribute to the energy transition in Africa,” Scatec CEO Terje Pilskog said.
The transaction, subject to stakeholder approvals, is expected to close in the first half of 2025. Financial terms weren’t disclosed.
The acquisition expands TotalEnergies’ global hydropower portfolio of approximately 3.7 gigawatts, including the 1.5 GW Mphanda Nkuwa project under development in Mozambique.
The deal underscores the growing importance of renewable energy in Africa’s power sector and TotalEnergies’ commitment to diversifying its energy portfolio.
