INTERVIEW - Solar-storage is best option to meet power demand in Africa, says Release CEO

The combination of solar power and batteries has become the most cost-effective and reliable energy solution to address the impacts of climate change, rising oil prices and associated logistic issues in Africa, and to help local utilities secure more reliable power to meet their customers' needs, says the CEO of Release by Scatec, a company offering solutions for off-grid or remote areas.

Africa is grappling with an urgent need for affordable and reliable power. The continent needs annual investments exceeding USD 200 billion (EUR 183.2bn) to achieve its energy and climate targets by 2030, according to the International Energy Agency (IEA). The organisation emphasises that while the bulk of clean energy investments is directed towards renewable power generation, the growing electricity demand cannot be sustainably met without upgrading and expanding the local grid.

“In these regions, large power consumers like mining operations and particularly utilities often depend on costly fuel-based power generation or face a complete lack of electricity access. Our Release solution, which is pre-financed, offers a quick and flexible alternative, reducing costs and delivering reliable power without the complexities typically associated with traditional IPPs or the financing challenges of purchasing an EPC solution,” Hans Olav Kvalvaag said in an interview with Renewables Now.

Release designs, finances and installs containerised solar power plants and battery storage starting from 5 MWp blocks through flexible short- or long-term leasing agreements.

The solution was initially designed for smaller commercial and industrial customers, UN camps, mini-grids and similar applications. And while the company is still focused on this market, it sees growing demand for larger grid-connected projects in the 10-30 MW range, Kvalvaag noted.

Speaking of the main obstacles Release has to deal with on a regular basis, Kvalvaag highlighted the prolonged decision-making processes on the customer's end, affecting both private mining clients and public utilities alike.

“Despite the urgent demand for more affordable and reliable power, the involvement of numerous stakeholders in the procurement process often leads to distractions and delays. Customers also face a wide array of suppliers, each offering vastly different technical solutions and financing options, some of which are more viable than others. When combined with the uncertainty surrounding future power demand, this naturally creates confusion and indecision for decision-makers in both companies and government/utilities,” Kvalvaag commented further.

The chief executive concluded that Release aims to simplify this complexity by offering a "no-regret" solution -- customers commit for just five years and after this period, they have the option to continue, purchase the equipment, or transition to a different solution.

Release, which is owned and managed by Norway’s Scatec Solar ASA and is backed by Climate Fund Managers (CFM) as a minority investor, was launched in 2019. The company is focused on medium and large energy consumers in emerging markets, already operating in Cameroon, South Sudan, South Africa, Mexico and Chad, with the highest demand coming from West and Central Africa.

Release’s portfolio of projects in operation and under construction stands at 47 MW of solar and 20 MWh of BESS. Most recently, it announced two new lease agreements with the national electricity company ENEO in Cameroon.

(USD 1 = EUR 0.916)

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