Scatec: Leading Renewable Company Expands with 142 MWp Solar Project in Brazil

In Brazil, major efforts to diversify the country’s energy mix are underway with Scatec ASA, a leading Norwegian renewable energy provider, spearheading the construction of a 142 MWp solar plant in the Brazilian state of Minas Gerais. This marks the company’s third solar project in Brazil, and its first in the southeast submarket, significantly diversifying Scatec's Brazilian portfolio. The initiative, supported by the Investment Fund for Developing Countries (IFU) with a EUR 25 million debt facility, will address Brazil's dependence on hydropower and energy mix diversification goals following recent droughts that have imposed challenges. The project will produce 307 GWh of renewable energy annually, catering to over 150,000 households. A key component of financing is a 10-year Power Purchase Agreement with Statkraft covering 75% of generated power. The rest is expected to be managed through various market agreements. To fund the USD 85 million solar plant investment, long-term project debt will cover 35%, with the remaining financed through Scatec equity and short-term facilities from IFU. The project pledges to generate jobs, particularly for women, during its construction and operational stages. This strategic alliance resonates with global objectives from COP29 and Brazil’s strategic focus on solar PV expansion as it seeks to assert its position in renewable energy.