Short Thesis Overview
Since publishing our short thesis on Seeking Alpha in March 2019, emerging markets solar developer and independent power producer (IPP) Scatec Solar ASA (SSO:NO and STECF:US) has not behaved as we had expected. Shares have rallied ~25-30% to new all-time highs despite a koldtbord (Norway's version of the smörgåsbord) of new risks to project economics and policy compounded by the impending threats detailed in our prior article.
Esplanade estimates that over 50% of Scatec's operating portfolio (28% at-risk), under-construction assets (93% at-risk), backlog (90% at-risk), and pipeline (49% at-risk)