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.
In 2017, Scatec entered a partnership with Equinor for solar development in Brazil and the partners have realised the 162 MW Apodi project together.
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).
The Sao Pedro and Paulo (SPP) project is Scatec's first solar project in merchant market with a blended contract portfolio. The project is being developed in partnership with Kroma Energia and Equinor and is located in Flores, Pernambuco. Financing will be provided by Banco do Nordeste (BNB) with expected debt leverage of 60%. The project has secured off-take of about 75% of energy generated with ANEEL and Engie, and the remaining energy will be contracted on shorter term contracts in the market.
Scatec will have a 40% ownership stake in the project. The Engineering, Procurement and Construction (EPC) and Operation & Maintenance as well as Asset Management service will be provided by Scatec and Equinor in partnership