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.com

About 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