Norwegian independent power producer (IPP) Scatec has signed a 15-year power purchase agreement (PPA) with BTG Pactual Comercializadora de Energia, a subsidiary of Brazilian firm Banco BTG Pactual, to develop a 130MW solar project in Narino, about 100km west of Bogota, Colombia.
Under the agreement, the PPA will cover around 85% of the estimated output from the 130MW project, while the remaining electricity will be sold on the Colombian market.
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According to Scatec CEO Terje Pilskog, Colombia offers a strong foundation for renewable energy projects. Furthermore, he said, “This agreement marks an important step for Scatec as we enter the Colombian market with a commercially robust project.”
The 130MW project carries an estimated capital expenditure (CapEx) of US$110 million. Scatec will act as engineering, procurement and construction (EPC) contractor, covering about 80% of costs, and will also provide operations and maintenance (O&M) and asset management services.
The project will be funded through a mix of non-recourse debt and equity, with Scatec holding majority ownership and Norfund as a minority partner. Scatec is in advanced talks with lenders for 65% leverage, targeting financial close and construction start in 2025.
The contract will be in Colombian pesos and indexed to inflation through the country’s Producer Price Index. The country offers high solar irradiation, growing demand for renewables, and a supportive regulatory framework, with more than 5GW of solar capacity expected to be added over the next five years.
In August 2025, Scatec reported stable Q2 results with revenue of NOK2.3 billion (US$220 million), flat quarter-on-quarter but up 51% year-on-year. Power generation reached 940GWh, slightly below Q1’s 979GWh. The company said gains were partly due to retroactive ancillary service rates in the Philippines rather than new project launches. Power production revenue held above NOK1.1 billion for the fourth consecutive quarter, at NOK1.3 billion (US$130 million).
