Scatec signs PPA with Statkraft for new 142 MW solar plant in Brazil
April 24 2024 - 2:45AM
Scatec signs PPA with Statkraft for new 142 MW solar plant in
Brazil
Oslo, 24 April 2024: Scatec ASA, a leading
renewable energy solutions provider, signed a 10-year power
purchase agreement (PPA) with Statkraft Energia do Brasil Ltda in
Brazil, for a 142 megawatt (MW) solar plant in Minas Gerais, in
Brazil.
The BRL-denominated PPA covers about 75% of the expected power
produced, while the remainder is expected to be sold under short,
medium, and long-term term contracts (PPAs). The project’s
estimated equity return exceeds Scatec’s hurdle rate of 1.2x the
project’s cost of equity.
The estimated total capital expenditure (capex) for the solar
plant is USD 94 million, to be financed by non-recourse financing
covering approximately 63% of this amount with the balance funded
by equity from Scatec. Furthermore, Scatec is in mature discussions
with lenders in respect of a debt facility of approximately EUR 15
million to partially fund Scatec’s equity share in the project.
Financial close and construction start for the solar plant is
expected in the second half of this year, with commercial
operations expected to start at the end of 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. 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,” says Scatec CEO Terje
Pilskog.
Scatec will have a 100% ownership stake in the solar plant, with
the aim to bring on equity partners once commercial operation is
reached to enhance value creation. Scatec will also be the EPC
manager for the project but with a limited EPC scope.
Statkraft Energia do Brasil Ltda is part of Statkraft AS, which
has been present in Brazil since 2012. The company has 26 operating
wind and hydropower plants, with an installed capacity of over 2 GW
in the country, considering existing, recent acquisitions and
projects under construction. Its market operations unit provides
services for commercial and industrial customers from various
segments via their offices in Rio de Janeiro and São Paulo.
"We're pleased to partner with Scatec on this significant
project, reinforcing our commitment to Brazil's sustainable energy
future," says Natasha Gaertner, VP of Statkraft
Markets. "This partnership reflects our shared vision for
a greener tomorrow and our dedication to providing clean, reliable
energy."
Scatec already has two solar plants in operation. The 531 MW
Mendubim solar plant (comprising several projects) in Rio Grande do
Norte was Scatec’s second operation in Brazil, developed in
partnership with Equinor and Hydro Rein, as well as Alunorte. It
started commercial operation earlier this year. Our first solar
plant in the country, the 162 MW Apodi solar plant, is located in
the municipality of Quixere in the north-eastern state of Ceara.
The project is in partnership with Equinor and XP, and the plant
reached commercial operation in November 2018.
For further information, please contact: For
analysts and investors: Andreas Austrell, VP IR, phone: +47 974 38
686, andreas.austrell@scatec.com For media: Meera Bhatia, SVP
External Affairs & Communications, phone: +47 468 44
959, meera.bhatia@scatec.comAbout
Scatec Scatec is a leading renewable energy
solutions provider, accelerating access to reliable and affordable
clean energy emerging markets. As a long-term player, we develop,
build, own, and operate renewable energy plants, with 4.6 GW in
operation and under construction across four continents today. We
are committed to grow our renewable energy capacity, delivered by
our passionate employees and partners who are driven by a common
vision of ‘Improving our Future’. Scatec is headquartered in Oslo,
Norway and listed on the Oslo Stock Exchange under the ticker
symbol ‘SCATC’. To learn more,
visit www.scatec.com or connect with us
on LinkedIn.
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act
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