Scatec ASA, a global renewable energy solutions provider, has entered into a 15-year Power Purchase Agreement (PPA) with BTG Pactual Comercializadora de Energía, the Colombian energy trading subsidiary of Banco BTG Pactual S.A. of Brazil. The agreement covers nearly 85% of the electricity output from Scatec’s upcoming 130 MW solar project, while the remaining share of production will be sold into Colombia’s electricity market. The PPA will be denominated in Colombian Pesos and adjusted in line with the country’s Producer Price Index to account for inflation.
This project represents Scatec’s first venture in Colombia and will be located in Nariño, just over 100 kilometres west of Bogotá. The Colombian market provides favourable conditions for renewable energy development, with high levels of solar irradiation, a strong demand for clean power, and a regulatory framework that encourages investment in renewables. Over the next five years, the country is expected to add more than 5 GW of solar capacity, further strengthening its renewable energy landscape.
The solar plant is expected to involve a total capital expenditure of approximately USD 110 million. Scatec will serve as the Engineering, Procurement, and Construction (EPC) provider, with its scope accounting for about 80% of the total costs. In addition, Scatec will also take responsibility for Operations & Maintenance (O&M) and Asset Management (AM) services once the plant is operational. The financing for the project will be structured through a combination of non-recourse loans and equity investment.
Terje Pilskog, CEO of Scatec, stated, “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.”
Scatec will retain majority ownership, while Norfund will join as a minority equity partner. Discussions with selected financial institutions for non-recourse project financing are at an advanced stage, with a target leverage of 65%. Financial close and the start of construction for the solar facility are anticipated in 2025, marking an important step in Scatec’s entry into the Colombian renewable energy market.
Subscribe to get the latest posts sent to your email.
