Energy company TotalEnergies has signed an agreement with Norwegian renewable-energy company Scatec to acquire its subsidiary SN Power, which holds interests in renewable hydropower projects in Africa through a joint venture with Norfund and British International Investment (BII).

Through this transaction, which is subject to certain conditions, TotalEnergies will acquire a 28.3% stake in the operational Bujagali hydropower plant in Uganda. With a capacity of 255 MW, it provides more than 25% of the country's peak electricity demand.

TotalEnergies will also acquire minority stakes in two projects under development – the 206 MW Ruzizi III project at the border of Rwanda, the Democratic Republic of Congo and Burundi and the 361 MW Mpatamanga project in Malawi.

"This acquisition of renewable hydroelectric assets and projects in Africa reflects our desire to contribute to the continent's energy transition.

“In particular, we are delighted to be able to become a player in the hydropower market 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," says TotalEnergies chairperson and CEO Patrick Pouyanné.

Scatec says the transaction supports the business continuity of the hydropower activities on the continent, including commitments to projects and stakeholders.

It notes that the proceeds from the transaction will be used to support Scatec’s self-funded growth plan.

“Our decision to sell our African hydropower assets is in line with our strategy to focus the largest share of our investments in our core markets and on solar, wind and battery energy storage, while divesting assets in non-focus markets.

“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.

“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,” says Scatec CEO Terje Pilskog.

TotalEnergies has interests in several hydropower projects with a gross capacity of 3.7 GW worldwide.