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).