Solar and storage startup Release announced that it has raised $102 million from climate-focused fund manager Climate Fund Managers (CFM), with proceeds aimed at rolling out its solar PV and battery solutions to power utilities and mining companies across Africa.
Founded in 2019 by Oslo-based renewable energy solutions provider Scatec, Release offers unique equipment for installing pre-assembled, scalable solar power plants and battery storage for the mining and utilities market. According to Scatec, the solution aims to overcome barriers in adopting solar tech in emerging markets, providing quick, cost-effective, and flexible leasing options.
Terje Pilskog, Scatec CEO and Chair of Release, said:
“We are very excited to have Climate Fund Managers join us as a partner to accelerate the significant growth potential of the Release platform. Release offers a unique renewable energy solution in a rapidly growing market segment that requires a different business model than Scatec’s larger scale project business.”
CFM invested in release via its Climate Investor One (CIO) fund, and provide $55 million in equity for a 32% stake, with Scatec retaining the majority shareholding of 68%. Additionally, CFM will provide shareholder loans totaling $47 million, with some on concessional terms.
Andrew Johnstone, CEO of CFM said:
“Our blended finance model facilitated the integration of impact finance into the deal structure, which Release will be able to leverage to improve its cost structure for its battery and grid connection solutions, allowing Release to offer even more competitive pricing and better value to its clients. We are delighted to support the Release team as they roll-out their critical climate technology across Africa, helping significantly reduce the emissions of the mining and utility sectors.”
Release has ongoing and under-construction projects in Cameroon, South Africa, Mexico, and South Sudan, with a combined capacity of 47 MW solar PV and 20 MWh of battery storage, with additional contracts for an additional 35 MW solar PV and 20 MWh of storage in Chad.