Scatec ASA, a leading renewable energy solutions provider, has signed a 15-year Power Purchase Agreement (PPA) with BTG Pactual Comercializadora de Energía, the Colombian energy trading arm of Banco BTG Pactual S.A. Brazil. The agreement will cover approximately 85% of the expected output from a 130 MW solar plant, with the remaining production sold on the Colombian electricity market. The PPA will be denominated in Colombian Pesos and adjusted for inflation based on the country’s Producer Price Index.
This marks Scatec’s first project in Colombia, located in Nariño, just over 100 kilometres west of Bogotá. The country presents strong market fundamentals, including high solar irradiation, growing demand for renewable energy, and a supportive regulatory framework. Colombia is expected to add more than 5 GW of solar capacity over the next five years. “This agreement marks an important step for Scatec as we enter the Colombian market with a commercially robust project. Colombia offers a solid framework for renewable energy investments, and we are pleased to contribute to the country’s energy transition through our integrated business model,” says Scatec CEO Terje Pilskog.
The project will be financed through a combination of non-recourse debt and equity, with Scatec retaining majority ownership and Norfund joining as a minority equity partner. Scatec is in advanced discussions with financial institutions for non-recourse project financing, targeting 65% leverage. Financial close and construction are expected to begin in 2025.
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