Scatec Solar Secures a 117 MW Solar Project in Argentina

Oslo, Norway - Scatec Solar has together with Equinor signed an agreement with the Portuguese company Martifer Renewables for the acquisition of the 117 MW PV project Guanizuil IIA located in the Province of San Juan in the northwest of Argentina. The project was awarded a Power Purchase Agreement (PPA) in the RenovAR auction process held by Cammesa, the Argentinian Wholesale Power Market Administrator, in November 2017.

Scatec Solar will on a 50/50 joint venture basis together with Equinor build, own and operate the power plant in San Juan. Total capital expenditure to realise the plant is estimated at USD 95 million and will be funded with 40% equity from Equinor and Scatec Solar (50% each), and 60% from a construction bridge loan provided by Equinor. When the plant is in operation the sponsors plan to secure suitable long-term project financing from a third party.

The project company has a 20-year PPA with Cammesa with a price of approximately 50 USD/MWh and is expected to produce about 308,000 MWh of electricity annually. Construction start is expected later in 2018 with the plant to be placed in commercial operation by the end of 2019.

Argentina is targeting to further expand its RenovAR program. PPAs have already been awarded to renewable energy projects of more than 4 GW. Over the past 18 months, approximately 1.5 GW of solar projects have been awarded in two consecutive utility scale solar auctions. To reach the goal of having 20% of energy generated from renewable sources by 2025, the Argentinean government estimate that 10 GW of additional renewable capacity is needed.

"With this agreement we are securing our first project in the growing solar market in Argentina. We see several additional opportunities in the country based on excellent solar irradiation as well as government support for renewables," says Raymond Carlsen, CEO of Scatec Solar. "We are expanding our cooperation with Equinor to Argentina following the successful partnership in Brazil where the Apodi project was launched last year."

Source: IWR Online, 22 Jun 2018