Norwegian renewable energy developer Scatec has signed a 10-year power purchase agreement (PPA) with a local unit of fellow Norwegian energy company Statkraft for a 142MW solar PV plant in Brazil.
The PPA will cover about 75% of the expected power produced by the solar PV plant located in Minas Gerais. The estimated total capital expenditure (capex) for this solar PV project is US$94 million, which will be financed by non-recourse financing covering about 63% of this amount with the balance funded by equity from Scatec.
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Financial close and construction of the project are expected to be in the second half of this year. Commercial operations will begin at the end of 2025.
This solar project will be Scatec’s third in Brazil, taking its total operational capacity in the country to 835MW. The 531MW Mendubim solar portfolio in Rio Grande do Norte was Scatec’s second operation in Brazil, developed in partnership with Equinor and Hydro Rein, as well as Alunorte. It started commercial operation In March this year.
The project is a joint venture between the three companies, an oil and gas firm, a renewable power company and a subsidiary of Norsk Hydro, all headquartered in Norway and each of which holds a 30% stake in the project. The companies first announced the project in 2020 and first aimed to commission the plant in late 2023 as they sought to expand their international renewable power portfolio.
The third and remaining project is the 162MW Apodi solar plant in the municipality of Quixere in the north-eastern state of Ceara, which reached commercial operation in November 2018.