Equinor announced its final investment decision for the development of the 140 MWp Serra da Babilônia (SdB) solar complex in Bahia, Brazil. This project will be established within the existing Serra da Babilônia I area, which currently hosts onshore wind farms operated by Rio Energy.
Rio Energy, a Brazilian onshore renewable energy company, was acquired by Equinor in 2023 to bolster its growth in Brazil’s onshore renewable energy sector. The SdB Solar Complex marks the first investment under Equinor’s management and represents Rio Energy’s initial foray into solar projects.
“The SdB Solar Complex marks the first investment decision under the management of Equinor and will be Rio Energy’s first solar project. This is an important milestone for us and our organization is very motivated to deliver the project safely and efficiently,” stated Marcos Meireles, CEO of Rio Energy.
Construction of the SdB Solar Complex is set to begin in September 2024, with commercial operations expected by the end of 2025. The project will utilize a hybrid model to complement wind and solar energy production, leveraging the existing interconnection system without requiring additional grid capacity. This setup will optimize total energy production by injecting solar energy into the grid when wind projects are not using their capacity.
“We are pleased to approve this investment just seven months after the acquisition of Rio Energy. Our participation in this platform creates a solid foundation to build a substantial and profitable renewable energy portfolio in the country, leveraging Rio Energy’s capabilities and maximizing synergies with our trading company, Danske Commodities. This is also our fourth project in the Brazilian Northeast, reinforcing the area’s relevance in offering renewable energy sources,” commented Veronica Coelho, President of Equinor in Brazil.
Aligned with Equinor’s strategy for Brazil, the energy produced by the SdB Solar Complex will be marketed by Danske Commodities, an energy trader wholly owned by Equinor. The project is expected to generate returns consistent with the company’s renewables guidelines.
“With the approval of the SdB Solar Complex, we now have approximately 600 MW of solar and wind energy in production and construction in the country,” declared Christian Lie Hansen, Equinor’s Vice President of Onshore Renewable Energy in the Americas. “The investment decision reinforces Brazil’s relevance as a key area to fulfill our ambition to be leaders in the energy transition, focusing on profitable growth in renewable energy.”
Equinor’s renewable energy portfolio in Brazil includes three assets in commercial production: the 162 MW Apodi solar complex (44% ownership), the 531 MW Mendubim solar complex (30% ownership), and the wind farms of the Serra da Babilônia I complex (223 MW, 100% ownership). Additionally, Equinor, through its wholly-owned subsidiary Rio Energy, is developing over 1.5 GW of onshore solar and wind projects.
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