TotalEnergies expands hydropower portfolio

A close up of water cascading out of a hydropower plant.

The transaction will give TotalEnergies an interest in hydropower projects in Uganda, Rwanda and Malawi. (Image source: Adobe Stock)

TotalEnergies, a global integrated energy company, is set to expand its hydropower portfolio through a strategic acquisition in Africa

The company has signed an agreement with Scatec to acquire its subsidiary SN Power, which holds interests in hydropower projects through a joint venture with Norfund and British International Investment.

“We are pleased to announce today’s transaction, as 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,” commented Terje Pilskog, CEO of Scatec. “We would like to thank the entire hydropower team for their hard work and dedication over the years, you have made a significant impact. In addition, our gratitude goes to our joint venture partners, host governments, and lenders for the support since 2020.”

The new agreement will further develop TotalEnergies hydropower portfolio (it holds interests in a number of projects across the globe with a gross capacity of 3.7GW worldwide), and complement its existing one in Africa where it already has 1.5GW under development in Mozambique (the Mphanda Nkuwa project).

As a result of the new transaction with Scatec, TotalEnergies will acquire a 28.3% stake in the Bujagali hydropower plant currently in operation in Uganda. With a capacity of 250MW, it covers more than 25% of the country's peak electricity demand. TotalEnergies will also acquire minority stakes in two projects under development in Rwanda (260MW) and Malawi (360MW).

“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,” remarked Patrick Pouyanné, chairman and CEO of TotalEnergies. “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.”