Scatec ASA has commenced construction of a 142 MW solar power plant in Minas Gerais, Brazil. To support its equity investment in the project, Scatec has secured a €25 million debt facility from IFU, the Danish Investment Fund for Developing Countries. This funding, combined with Scatec’s expected equity injection of $28 million, underscores the company’s commitment to advancing renewable energy in the region.
The project has a power purchase agreement (PPA) in place with Statkraft for approximately 75% of its anticipated output, with the remaining energy to be sold through a mix of short, medium, and long-term contracts. The total project cost is estimated at $85 million, funded through 35% long-term non-recourse debt and the balance from Scatec equity and the IFU facility. Financial close for the long-term debt is expected in the first half of 2025, with commercial operations projected to begin in the first half of 2026. “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,” says Scatec CEO Terje Pilskog.
