Scatec Secures Financing for Major Solar Power Project
Scatec ASA is delighted to announce that it has successfully reached financial close for its ambitious 142 megawatt (MW) solar photovoltaic plant under construction in Minas Gerais. This significant achievement marks an essential milestone for Scatec as it advances in enhancing its renewable energy portfolio. The project reflects Scatec's commitment to sustainability and its strategic focus on expanding its reach in emerging energy markets.
Funding Details and Project Scope
The project has received non-recourse financing amounting to BRL 150 million, approximately USD 27 million, courtesy of Banco de Nordeste do Brasil. This financing covers 30% of the overall projected capital expenditure, which totals BRL 506 million (about USD 91 million). As construction progresses, the solar plant is on track for commercial operations in the first half of 2026, showcasing Scatec's robust project execution capabilities.
CEO Insights on Project Development
“Securing long-term financing for the Rio Urucuia project is a pivotal step toward delivering a high-quality renewable energy solution,” stated Scatec CEO, Terje Pilskog. He expressed optimism about the project’s development and its significance in solidifying Scatec's presence in Brazil's renewable energy landscape. The construction of the solar plant is advancing on schedule, aligning with Scatec's vision for contributing to a greener future through reliable and affordable clean energy.
Partnerships and Power Purchase Agreements
To further support its financial commitments, Scatec has also obtained a debt facility of EUR 25 million from Impact Fund Denmark. This funding is intended to partially cover Scatec’s equity share in the project, totaling an expected equity injection of BRL 201 million (USD 36 million) by the time commercial operations begin. In addition, Scatec has finalized a 10-year power purchase agreement (PPA) with Statkraft, securing approximately 75% of the anticipated power production, while the remaining output is slated for sale through various PPAs of differing durations.
Ownership and Operational Management
Holding a 100% ownership stake in the solar power project, Scatec plans to invite equity partners after commencing operations to maximize value creation in the long term. As the engineering, procurement, and construction (EPC) manager, Scatec will oversee the project with a carefully defined contract scope. Additionally, the company will provide ongoing operations and maintenance (O&M) as well as asset management services to ensure optimal performance of the solar power facility.
About Scatec
Scatec stands at the forefront of renewable energy solutions, dedicated to facilitating access to reliable and affordable clean energy across developing markets. The company boasts impressive operational capacity, with 6.2 GW of renewable energy resources either operational or under construction across five continents. With a focused mission on enhancing renewable energy capacity, Scatec is driven by its dedicated workforce and shared vision of 'Improving our Future'. Headquartered in Oslo, Norway, Scatec is listed on the Oslo Stock Exchange under the ticker symbol ‘SCATC’. For more insights into Scatec's journey and initiatives, visit their official website or join their network on LinkedIn.
Frequently Asked Questions
What is the capacity of the solar plant Scatec is constructing?
The solar plant currently under construction by Scatec has a capacity of 142 MW.
Who is providing the financing for this solar project?
Banco de Nordeste do Brasil is providing BRL 150 million in financing for the project.
When is the expected completion date for the solar project?
The project is expected to reach commercial operations in the first half of 2026.
What percentage of power production is covered by the power purchase agreement?
Approximately 75% of the expected power produced will be covered by a power purchase agreement with Statkraft.
What is Scatec’s mission regarding renewable energy?
Scatec aims to accelerate access to reliable and affordable clean energy in emerging markets, supporting a sustainable future.
