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 530 MW Mendubim solar project is Scatec’s second project in Brazil, and is being developed in partnership with Equinor and Hydro. All three partners will have an equal economic interest of 33.3 percent in the project and will jointly provide Engineering, Procurement and Construction (EPC) services. Scatec will further provide Operation & Maintenance as well as Asset Management services to the power plants together with the partners.
The estimated total capex for the project is USD 430 million and the power produced will be sold under 20-year PPAs.
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).