Scatec Solar secures 78 MW solar projects in Brazil

Oslo, February 1, 2016: Scatec Solar has signed an agreement with the Spanish Company, Grupo Gransolar, to acquire a majority stake in two solar projects totalling 78 MW (DC) in the state of Piaui in Brazil.

The projects were bid and won by Gransolar in the auction process held by ANEEL, the Brazilian Electricity Regulatory Agency, in August 2015. The projects will enter into 20-year Power Purchase Agreements (PPAs) with ANEEL.  Located in the state of Piaui in North-Eastern Brazil, the solar power plants are expected to provide about 164,000 MWh annually to the grid, generating revenues of about BRL 55 million per year (USD 14 million).

“The solar market in Brazil has significant long term potential and we want to take part in the development of this market. Norway and Brazil have strong bilateral relations with deep alliances within several industries and with these first projects we believe Scatec Solar is well positioned to participate in this market going forward,” said Raymond Carlsen, CEO of Scatec Solar.

“These projects are an important milestone in Gransolar’s journey. We are proud of teaming up with Scatec Solar a strategic partner with whom we share values and entrepreneur culture. Brazil is a target solar market for Gransolar, having already deployed our subsidiaries Ingenia and PV Hardware in the country. We aim to have start production of our tracking system by the end of 2016” said Domingo Vegas, President of Grupo Gransolar.

Brazil is targeting to further expand its Renewable Energy Program. PPAs have already been awarded to wind power projects totalling nearly 12 GW. Over the past one and a half years, approximately 3 GW of solar projects have been awarded in three consecutive utility scale solar auctions. The government plans to award another 7 GW by 2024.

Scatec Solar ASA will build, own and operate the two power plants in Piaui. Scatec Solar will own 70 percent of the equity and Gran Solar 30 percent. Total capital expenditure to realise the plants is estimated to BRL 418 million (USD 105 million) and construction is expected to start in the first quarter 2017.

For further information, please contact:

Mr. Raymond Carlsen, CEO,         tel: +47 454 11 280 

Mr. Mikkel Tørud, CFO,                 tel+47 976 99 144

About Scatec Solar
Scatec Solar is an integrated independent solar power producer, delivering affordable, rapidly deployable and sustainable source of clean energy worldwide. A long term player, Scatec Solar develops, builds, owns, operates and maintains solar power plants, and already has an installation track record of close to 600 MW.

Currently, the company is producing electricity from 383 MW of solar power plants in the Czech Republic, South Africa, USA, Rwanda and Honduras. Construction of additional 43 MW solar power plants in Jordan is under way.

With an established global presence, the company is growing strongly with a project backlog and pipeline of more than 1.5 GW under development in the Americas, Africa, Asia and the Middle East. Scatec Solar is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SSO’.

About Gransolar
Grupo Gransolar is a vertically integrated company operating in all links of the solar value chain. As an EPC contractor, Gransolar excels by controlling costs, harmonizing EPC processes and arbitrating on technology and systems to deliver outperforming solar plants worldwide.

Besides its capabilities as a Developer and EPC contractor, Grupo Gransolar counts on two subsidiaries, an engineering company called Ingenia Solar Energy, and PV Hardware, for structure and tracking systems design and manufacturing.

Headquartered in Madrid, Spain, Gransolar has a global presence with a track record of over 400 MW installed in Spain, Italy, South Africa, Honduras, Central America and United Stated. Today, Gransolar counts with additional 400 MW pipeline under development in Middle East, Africa and South America.