Renewables: TotalEnergies Acquires a Portfolio of Hydropower Projects in Africa to Deploy its Multi-Energy Strategy
TotalEnergies has signed an agreement to acquire 100% of Scatec's subsidiary SN Power, gaining interests in renewable hydropower projects in Africa. The acquisition includes a 28.3% stake in Uganda's Bujagali hydropower plant (250 MW capacity) and minority stakes in projects under development in Rwanda (260 MW) and Malawi (360 MW). This move aligns with TotalEnergies' multi-energy strategy and commitment to Africa's energy transition.
The transaction, subject to certain conditions, will expand TotalEnergies' hydropower portfolio, which currently includes 3.7 GW of gross capacity worldwide. This acquisition supports the company's ambition to achieve net-zero emissions by 2050 and its goal of reaching 35 GW of renewable electricity generation capacity by 2025.
TotalEnergies ha firmato un accordo per acquisire il 100% della sussidiaria SN Power di Scatec, guadagnando interessi in progetti di idroelettrico rinnovabile in Africa. L'acquisizione include una partecipazione del 28,3% nell'impianto idroelettrico di Bujagali in Uganda (capacità di 250 MW) e partecipazioni di minoranza in progetti in fase di sviluppo in Rwanda (260 MW) e Malawi (360 MW). Questo passo si allinea con la strategia multi-energetica di TotalEnergies e il suo impegno nella transizione energetica africana.
La transazione, soggetta a determinate condizioni, espanderà il portafoglio di idroelettrico di TotalEnergies, che attualmente include 3,7 GW di capacità lorda a livello globale. Questa acquisizione supporta l'ambizione dell'azienda di raggiungere emissioni nette zero entro il 2050 e il suo obiettivo di raggiungere 35 GW di capacità di generazione di elettricità rinnovabile entro il 2025.
TotalEnergies ha firmado un acuerdo para adquirir el 100% de la subsidiaria SN Power de Scatec, obteniendo intereses en proyectos de energía hidroeléctrica renovable en África. La adquisición incluye una participación del 28,3% en la planta hidroeléctrica de Bujagali en Uganda (capacidad de 250 MW) y participaciones minoritarias en proyectos en desarrollo en Ruanda (260 MW) y Malaui (360 MW). Este movimiento se alinea con la estrategia multi-energética de TotalEnergies y su compromiso con la transición energética en África.
La transacción, sujeta a ciertas condiciones, ampliará el portafolio de energía hidroeléctrica de TotalEnergies, que actualmente incluye 3,7 GW de capacidad bruta en todo el mundo. Esta adquisición respalda la ambición de la empresa de alcanzar emisiones netas cero para 2050 y su meta de alcanzar 35 GW de capacidad de generación de electricidad renovable para 2025.
TotalEnergies는 Scatec의 자회사 SN Power의 100%를 인수하는 계약을 체결하여 아프리카의 재생 가능한 수력 발전 프로젝트에 대한 지분을 확보하게 되었습니다. 이 인수에는 우간다 부자갈리 수력 발전소의 28.3% 지분 (250 MW 용량)과 르완다(260 MW) 및 말라위(360 MW)에서 개발 중인 프로젝트에 대한 소수 지분이 포함됩니다. 이 조치는 TotalEnergies의 다중 에너지 전략과 아프리카 에너지 전환에 대한 헌신에 부합합니다.
이 거래는 특정 조건에 따라 진행되며, 현재 전 세계에서 3.7 GW의 총 용량을 보유하고 있는 TotalEnergies의 수력 자산 포트폴리오를 확장할 것입니다. 이 인수는 2050년까지 탄소 중립 목표 달성과 2025년까지 35 GW의 재생 가능 전기 생산 용량을 달성하겠다는 회사의 목표를 지원합니다.
TotalEnergies a signé un accord pour acquérir 100% de la filiale SN Power de Scatec, obtenant des intérêts dans des projets d'hydroélectricité renouvelable en Afrique. L'acquisition comprend une participation de 28,3% dans la centrale hydroélectrique de Bujagali en Ouganda (capacité de 250 MW) et des participations minoritaires dans des projets en développement au Rwanda (260 MW) et au Malawi (360 MW). Cette initiative s'inscrit dans la stratégie multi-énergétique de TotalEnergies et son engagement envers la transition énergétique en Afrique.
La transaction, soumise à certaines conditions, permettra d'étendre le portefeuille hydroélectrique de TotalEnergies, qui comprend actuellement 3,7 GW de capacité brute dans le monde. Cette acquisition soutient l'ambition de l'entreprise d'atteindre des émissions nettes nulles d'ici 2050 et son objectif d'atteindre 35 GW de capacité de production d'électricité renouvelable d'ici 2025.
TotalEnergies hat eine Vereinbarung unterzeichnet, um 100% der Tochtergesellschaft SN Power von Scatec zu erwerben und damit Interessen an erneuerbaren Wasserkraftprojekten in Afrika zu gewinnen. Die Übernahme umfasst einen 28,3% Anteil am Wasserkraftwerk Bujagali in Uganda (250 MW Kapazität) sowie Minderheitsbeteiligungen an in Entwicklung befindlichen Projekten in Ruanda (260 MW) und Malawi (360 MW). Dieser Schritt entspricht der Multi-Energie-Strategie von TotalEnergies und dem Engagement für den Energiewandel in Afrika.
Die Transaktion, die bestimmten Bedingungen unterliegt, wird das Wasserkraftportfolio von TotalEnergies erweitern, das derzeit 3,7 GW Bruttokapazität weltweit umfasst. Diese Übernahme unterstützt das Bestreben des Unternehmens, bis 2050 Netto-Null-Emissionen zu erreichen und bis 2025 35 GW an Kapazität zur Erzeugung erneuerbarer Elektrizität zu erreichen.
- Acquisition of renewable hydropower assets in Africa, expanding TotalEnergies' clean energy portfolio
- 28.3% stake in operational Bujagali hydropower plant in Uganda, covering over 25% of the country's peak electricity demand
- Minority stakes in two hydropower projects under development in Rwanda (260 MW) and Malawi (360 MW)
- Aligns with TotalEnergies' multi-energy strategy and supports Africa's energy transition
- Contributes to TotalEnergies' goal of reaching 35 GW in renewable electricity generation capacity by 2025
- None.
Insights
TotalEnergies' acquisition of SN Power's hydropower assets in Africa marks a significant step in the company's multi-energy strategy and its commitment to the continent's energy transition. This move is particularly noteworthy for several reasons:
- The acquisition of a 28.3% stake in Uganda's Bujagali hydropower plant is strategically important. With a capacity of 250 MW, covering
25% of Uganda's peak electricity demand, this asset provides TotalEnergies with a substantial foothold in the country's power sector. - The additional stakes in projects under development in Rwanda (260 MW) and Malawi (360 MW) further expand TotalEnergies' renewable energy portfolio in Africa, positioning the company as a key player in the region's energy transition.
- This acquisition aligns with TotalEnergies' broader goal of reaching 35 GW of renewable electricity generation capacity by 2025 and producing over 100 TWh of net electricity by 2030.
The move demonstrates TotalEnergies' commitment to diversifying its energy portfolio and supporting African countries in their energy transition. However, investors should note that the transaction's completion is subject to certain conditions, which may affect the timeline and final outcome of the deal.
While specific financial details of the acquisition were not disclosed, this transaction carries several implications for TotalEnergies' financial outlook:
- The acquisition of operational assets, particularly the stake in the Bujagali plant, should contribute to immediate revenue generation and potentially improve the company's cash flow.
- The projects under development in Rwanda and Malawi represent future growth opportunities but will require capital expenditure in the short to medium term.
- This move aligns with TotalEnergies' strategy to build a diverse, cost-competitive portfolio of renewable and flexible assets, which could enhance long-term profitability and stability.
- The expansion into hydropower complements TotalEnergies' existing renewable portfolio, potentially offering more stable baseload power generation compared to intermittent sources like solar and wind.
Investors should consider how this acquisition fits into TotalEnergies' broader capital allocation strategy and its potential impact on the company's financial metrics, including debt levels and return on invested capital. The transaction's value and its immediate impact on earnings will be important factors to watch for in upcoming financial reports.
TotalEnergies' expansion in African hydropower through this acquisition presents both opportunities and challenges from a geopolitical perspective:
- The investment in Uganda's energy infrastructure could strengthen TotalEnergies' relationship with the government, potentially benefiting its oil projects in the country. However, it also increases the company's exposure to political risks in Uganda.
- By investing in critical infrastructure across multiple African countries (Uganda, Rwanda, Malawi), TotalEnergies is positioning itself as a key player in regional energy security. This could provide diplomatic leverage but also expose the company to geopolitical tensions.
- The focus on renewable energy aligns with global climate goals and could improve TotalEnergies' standing with international organizations and environmentally conscious investors.
- However, large-scale hydropower projects can be controversial due to their environmental and social impacts, potentially leading to reputational risks and local opposition.
Investors should monitor how TotalEnergies navigates these complex geopolitical landscapes and manages relationships with various stakeholders, including governments, local communities and environmental groups. The company's ability to balance its fossil fuel interests with renewable investments in Africa will be important for its long-term success in the region.
TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) has signed an agreement with Scatec, a Norwegian renewable energy company, to acquire
As a result of this transaction, which is subject to certain previous conditions, TotalEnergies will acquire a
TotalEnergies will also acquire minority stakes in two projects under development in
“This acquisition of renewable hydroelectric assets and projects in
“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
To date, TotalEnergies has interests in a number of hydropower projects with a gross capacity of 3.7 GW worldwide:
-
218 MW installed in
France (19 MW),Portugal (33 MW) andTurkey (166 MW)
-
1.5 GW under development in
Mozambique (Mphanda Nkuwa project)
-
2 GW under development by Adani Green in
India
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TotalEnergies and electricity
As part of its ambition to get to net zero by 2050, TotalEnergies is building a world class cost-competitive portfolio combining renewables (solar, onshore and offshore wind) and flexible assets (CCGT, storage) to deliver clean firm power to its customers. At the end of 2023, TotalEnergies’ gross renewable electricity generation installed capacity was 22 GW. TotalEnergies will continue to expand this business to reach 35 GW in 2025 and more than 100 TWh of net electricity production by 2030.
About TotalEnergies
TotalEnergies is a global integrated energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to provide as many people as possible with energy that is more reliable, more affordable and more sustainable. Active in about 120 countries, TotalEnergies places sustainability at the heart of its strategy, its projects and its operations.
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Cautionary Note
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TotalEnergies Contacts
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FAQ
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