Norwegian independent power producer (IPP) Scatec has secured BRL150 million (US$27 million) for its 142MW solar PV plant in Minas Gerais, Brazil.
The funds raised will be provided by Brazilian regional development bank Banco de Nordeste do Brasil. The financing covers 30% of the total estimated capital expenditure of BRL506 million (US$91 million). The solar plant, currently under construction, is expected to begin commercial operation in the first half of 2026.
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Scatec will serve as the engineering, procurement and construction (EPC) manager for the project under a limited-scope contract. It will also provide operations and maintenance and asset management services for the solar plant.
The news follows Scatec’s signing of a ten-year power purchase agreement (PPA) with a local unit of Statkraft for the plant in 2024. The PPA covers 75% of the plant’s expected output, with the remaining electricity to be sold through short-, medium- and long-term PPAs.
At the time of the announcement, 63% of the US$94 million project was financed through non-recourse debt, with the remaining financing provided by Scatec’s equity. Scatec initially planned to begin commercial operations in late 2025, and the facility would be Scatec’s third solar project in Brazil, raising its total operational capacity in the country to 835MW.
Established in 2007, Scatec has a portfolio of 6.2GW in operation and under construction across five continents. Recently, Scatec raised US$479 million for its 1.1GW/200MWh solar-plus-storage Obelisk project in Egypt.
The funding was provided by the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB) and British International Investment (BII). The project cost reached US$590 million, of which around 80% has been secured through financing.
Apart from Brazil, the IPP is developing an 846MW solar cluster in South Africa, awarded by the Department of Electricity and Energy under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) Round 7.
The ZAR13 billion (US$735 million) Kroonstad PV cluster in Free State includes three plants: Oslaagte Solar 2 and 3 (293MW each) and Leeuwspruit Solar (260MW). The project will be 90% debt-financed, with the remainder from equity. Financial close is expected in 2026.
