Scatec Inks PPA with Statkraft for 142 MW Solar Project in Brazil

Scatec ASA, a prominent player in renewable energy solutions, has inked a 10-year power purchase agreement (PPA) with Statkraft Energia do Brasil Ltda in Brazil, a part of Statkraft AS.

The agreement is for a 142 MW solar plant in Minas Gerais. The BRL-denominated PPA covers 75% of anticipated power production, with the remainder slated for sale under various contract terms. The project, with an estimated equity return exceeding Scatec’s hurdle rate, entails a total capital expenditure (capex) of USD 94 million, funded predominantly through non-recourse financing and Scatec’s equity. Discussions with lenders are underway for a debt facility of approximately EUR 15 million to support Scatec’s equity share.

Financial close and construction commencement are slated for the second half of the year, with commercial operations projected to commence by the end of 2025. Scatec retains 100% ownership initially, with plans to onboard equity partners post-commercial operation for value augmentation. Additionally, Scatec will serve as the EPC manager for the project with a defined scope.

“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. This is our first plant in the southeast submarket, diversifying and strengthening our portfolio in the country. Brazil is one of our focus markets, and we will continue to seek opportunities and push the green transition forward,” sayid Scatec CEO Terje Pilskog.

“We’re pleased to partner with Scatec on this significant project, reinforcing our commitment to Brazil’s sustainable energy future,” added Natasha Gaertner, VP of Statkraft Markets. “This partnership reflects our shared vision for a greener tomorrow and our dedication to providing clean, reliable energy.”