Norway-based Scatec will own 70% stake of the joint investment firm and Norfund will hold the remaining interest.
Scatec and Norfund have already worked together on four solar photovoltaic projects, with a combined generation capacity of 200MW, in South Africa and Rwanda.
Both the parties now plan to develop more projects in countries where Norfund currently operates.
Scatec Solar chief executive Raymond Carlsen said: "Our common objective is to contribute to the increased implementation of renewable energy in sub-Saharan Africa, and the project-to-project co-operation we have had so far has proved very successful.
"Long term financing is the key enabler to any solar project and will reduce the risk in all phases of the project execution. When Norfund invests in our projects, their backing from the Norwegian Government combined with the company’s excellent standing in the market will attract other investors as well."
Norfund CEO Kjell Roland said: "Norfund needs strong industrial partners like Scatec Solar in order to contribute to a sustainable development in poor countries. Our objective is to increase our investments and this type of long-term cooperation is a prerequisite for us to do so in a good and effective way."
The Ministry of Foreign Affairs owns Norfund, whose current investment portfolio totals $1.6bn spent in 120 different projects.
Image: Scatec Solar and Norfund will jointly invest in solar power projects in developing countries. Photo: Courtesy of maya picture/FreeDigitalPhotos.net.
