With focus on renewable energy and a well-developed regulatory framework, the solar market in Brazil has significant long-term potential. Scatec is taking an active part in developing solar projects in the country.

Scatec entered a partnership with Equinor for two solar development projects in Brazil and the partners have realised the 162 MW Apodi and 531 MW Mendubim projects together.

The 531 MW Mendubim solar plant (comprised of several projects) is Scatec’s second operation in Brazil, developed in partnership with Equinor and Hydro Rein. All three partners have an equal economic interest of 30 percent in the project and jointly provided Engineering, Procurement and Construction (EPC) services, Alunorte holds the remaining 10 percent. Scatec will provide Operation & Maintenance as well as Asset Management services to the power plant together with the partners.

The total capex for the project is USD 430 million and the power produced will be sold under 20-year PPA to Alunorte.

The Apodi project is located in the municipality of Quixere in the north-eastern state of Ceara. The project was established as a 50/50 joint venture with Equinor. Start of construction was late 2017 and the solar plant reached commercial operation in November 2018. The electricity is sold under a 20-year Power Purchase Agreement with the Brazilian Power Commercialization Chamber (CCEE). The equity partners are Equinor and Kroma, and lender is BNB (guaranteed during construction by LC Banks).

In April 2024, Scatec signed a 10-year PPA with Statkraft Energia do Brasil Ltda in Brazil, for a 142 MW solar plant in Minas Gerais, in Brazil. The BRL-denominated PPA covers about 75% of the expected power produced, while the remainder is expected to be sold under short, medium, and long-term term contracts (PPAs).

The estimated total capex for the solar plant is USD 94 million, to be financed by non-recourse financing covering approximately 63% of this amount with the balance funded by equity from Scatec.

Scatec will have a 100% ownership stake in the solar plant, with the aim to bring on equity partners once commercial operation is reached to enhance value creation. Scatec will also be the EPC manager for the project but with a limited EPC scope. Financial close and construction start for the solar plant is expected in the second half of this year, with commercial operations expected to start at the end of 2025.