Scatec ASA, a leading provider of renewable energy solutions, has begun building a 142 MW solar plant in Minas Gerais, Brazil. To support its equity investment in the project, the company secured a €25 million loan from IFU, the Danish Investment Fund for Developing Countries. Scatec plans to invest an additional $28 million as its equity contribution. The project includes a power purchase agreement (PPA) with Statkraft for approximately 75% of the expected energy output. The remaining power will be sold through short, medium, and long-term contracts.
Terje Pilskog, CEO of Scatec, said, “We are very excited to start construction of our third solar project in Brazil which will take our total capacity in the country to 835 MW. This is our first plant in the southeast submarket where power demand is strong, diversifying and strengthening our Brazilian portfolio. Brazil is one of our core markets, and we will continue to seek opportunities and push the green transition forward.”
The total cost for the 142 MW solar plant is estimated at $85 million. This will be funded through long-term project debt for 35% of the amount, with the rest covered by Scatec’s equity and the short-term facility from IFU. Financial close for the long-term debt is expected in the first half of 2025, and commercial operations are set to begin in the first half of 2026.
Scatec will fully own the solar plant initially, with plans to bring in equity partners after commercial operations start to maximize value. Scatec will act as the EPC manager for the project, with a limited scope, and will also handle Operations & Maintenance and Asset Management services for the plant.
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