• Exclusive Content
  • Events
  • Endeavor Business Media Energy
    1. Renewables

    Scatec Signs 10-Year PPA with Statkraft for 142 MW Solar Plant in Minas Gerais, Brazil

    April 25, 2024
    The estimated total capital expenditure for the solar plant is $94 million and will be financed by non-recourse financing, covering approximately 63% of the amount with the balance funded by equity from Scatec
    Statkraft
    662a4b458fa58c001ddec853 Statkraft

    Scatec, a renewable energy solutions provider, has signed a 10-year power purchase agreement (PPA) with Statkraft for a 142 MW solar plant in Minas Gerais, Brazil.

    The agreement covers about 75% of the expected power produced, and the remainder is expected to be sold under short-, medium-, and long-term PPAs. The project’s estimated equity return goes beyond Scatec’s hurdle rate of 1.2x the project’s cost of equity.

    The estimated total capital expenditure for the solar plant is $94 million, which will be financed by non-recourse financing. This financing will cover approximately 63% of the amount, with the balance funded by equity from Scatec. 

    Scatec is in discussions with lenders for a debt facility of approximately $16 million to partially fund its equity share in the project. The solar plant’s financial closure and construction are expected in the second half of 2024, and commercial operations will begin at the end of 2025.

    “This is the third solar project for us in Brazil, taking the total capacity to 835 MW,” said Scatec CEO Terje Pilskog. “This is our first plant in the southeast submarket, diversifying and strengthening our portfolio in the country.”

    Scatec will not only have a 100% ownership stake in the solar plant but also intends to bring equity partners to enhance value creation once commercial operation is reached. Scatec will also be the EPC manager for the project, which has a limited scope.

    About the Author

    EnergyTech Staff

    Rod Walton is senior editor for EnergyTech.com. He has spent 14 years covering the energy industry as a newspaper and trade journalist.

    Walton formerly was energy writer and business editor at the Tulsa World. Later, he spent six years covering the electricity power sector for Pennwell and Clarion Events. He joined Endeavor and EnergyTech in November 2021.

    He can be reached at [email protected]. 

    EnergyTech is focused on the mission critical and large-scale energy users and their sustainability and resiliency goals. These include the commercial and industrial sectors, as well as the military, universities, data centers and microgrids.

    Many large-scale energy users such as Fortune 500 companies, and mission-critical users such as military bases, universities, healthcare facilities, public safety and data centers, shifting their energy priorities to reach net-zero carbon goals within the coming decades. These include plans for renewable energy power purchase agreements, but also on-site resiliency projects such as microgrids, combined heat and power, rooftop solar, energy storage, digitalization and building efficiency upgrades.