Power Supply Contracts: Scatec Signs PPA With Statkraft For Solar Power Plant In Brazil
Oslo, Norway - The importance of long-term power purchase agreements (PPAs) in the course of the energy transition is also increasing outside Europe. The Norwegian energy group Scatec has now signed a comprehensive power purchase agreement (PPA) with Statkraft Energia do Brasil Ltda in Brazil.
The estimated total capex for the solar power plant is USD 94 million, approximately 63 percent of which is to be financed through non-recourse financing. The remainder is to be covered by Scatec's equity and a credit facility. Financial close and the start of construction for the solar power plant are expected in the second half of 2024, with commercial operation scheduled to begin in late 2025.
“This is the third solar project for us in Brazil, taking the total capacity to 835 MW. We are excited about this new project and are pleased to have secured a power purchase agreement with renowned and leading renewable energy player and trading company Statkraft for this new project in Minas Gerais,” says Scatec CEO Terje Pilskog. “Brazil is one of our focus markets, and we will continue to seek opportunities and push the green transition forward,” Pilskog continues.
Scatec has two solar power plants in operation in Brazil to date. The 531 MW Mendubim solar power plant in Rio Grande do Norte, which consists of several sub-projects and was developed in collaboration with Equinor, Hydro Rein and Alunorte, started commercial operation in early 2024. Scatec's first Brazilian solar power plant is the 162 MW Apodi project in the north-eastern state of Ceara.
Statkraft Energia do Brasil Ltda is part of Statkraft AS, which has been present in Brazil since 2012. The company operates 26 wind and hydropower plants in the country with an installed capacity of over 2 GW, including existing, recently acquired and under construction projects.
Source: IWR Online, 26 Apr 2024
