Scatec Starts Construction At The 142 MW Urucuia Solar Project In Brazil

Scatec ASA, a leading renewable energy solutions provider is starting construction of the 142 megawatt (MW) solar plant in Minas Gerais in Brazil. Scatec has further secured a debt facility of EUR 25 million from IFU, the Danish Investment Fund for Developing Countries, to partially fund Scatec’s equity share in the project, bringing Scatec’s expected equity injection to USD 28 million.

Scatec has signed a PPA with Statkraft for the project for about 75% of the expected power produced. The remainder is expected to be sold under short, medium, and long-term term contracts (PPAs).

The estimated total capital expenditure for the solar plant is USD 85 million, to be financed by long-term non-recourse project debt covering 35%, and the reminder to be financed by Scatec equity and the short-term facility from IFU. Financial close for the long-term project debt for the solar plant is expected in the first half of 2025, with commercial operations expected to start in the first half of 2026.

“We are very excited to start construction of our third solar project in Brazil which will take our total capacity in the country to 835 MW. This is our first plant in the southeast submarket where power demand is strong, diversifying and strengthening our Brazilian portfolio. Brazil is one of our core 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. Scatec will provide Operations & Maintenance and Asset Management services to the solar power plant.