Scatec Solar gains foothold in Brazil with PV project acquisitions

Scatec Solar has acquired two projects totalling 78MW in Brazil. Image: Scatec Solar.

Norwegian independent power producer Scatec Solar has bought a majority stake in two Brazil PV projects from Spanish company Grupo Gransolar.

The two projects in the state of Piaui total 78MW and were won by Gransolar in the August 2015 solar-only held by Brazil’s energy regulatory, ANEEL.

The two plants are expected to generate around 164,000MWh annually and the power will be sold under 20-year power purchase agreements to ANEEL.

"The solar market in Brazil has significant long-term potential and we want to take part in the development of this market. Norway and Brazil have strong bilateral relations with deep alliances within several industries and with these first projects we believe Scatec Solar is well positioned to participate in this market going forward," said Raymond Carlsen, CEO of Scatec Solar.

"These projects are an important milestone in Gransolar's journey. We are proud of teaming up with Scatec Solar a strategic partner with whom we share values and entrepreneur culture. Brazil is a target solar market for Gransolar, having already deployed our subsidiaries Ingenia and PV Hardware in the country. We aim to have start production of our tracking system by the end of 2016," said Domingo Vegas, president of Grupo Gransolar.

Scatec Solar will build, own and operate the two power plants. Scatec Solar will own 70% of the equity and Gransolar the other 30%. Total capital expenditure to realise the plants are estimated to BRL418 million (US$105 million) and construction is expected to start in the first quarter of 2017.

Brazil is targeting to further expand its renewable energy programme. PPAs have already been awarded to wind power projects totalling nearly 12GW. Over the past one and a half years, approximately 3GW of solar projects have been awarded in three consecutive utility scale solar auctions. The government plans to award another 7GW by 2024.

Last week Scatec Solar said it was aiming to have 1,400-1,600MW of projects under operation or construction by the end of 2018. The company has a project pipeline that encompasses the Americas, Middle East and north Africa, West Africa, South Africa and Pakistan. Carlsen recently told PV Tech the company was also exploring projects in Iran.

Tags: brazil, scatec solar, auction

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