The Norwegian group Scatec has announced the financial close of its photovoltaic solar power plant project with a capacity of 142 megawatts, currently under construction in the state of Minas Gerais, Brazil. The non-recourse financing amounts to BRL150mn ($27mn), representing 30% of the total estimated investment for construction, which stands at BRL506mn ($91mn).
Structured financing and key partners
The financing is provided by Banco do Nordeste do Brasil, a leading player in supporting regional energy projects. This financial backing comes as construction proceeds according to schedule, with commercial operation expected in the first half of 2026. Scatec holds full ownership of the project and plans to open the capital to new partners after the plant enters commercial operation.
The company has already secured an additional EUR25mn from Impact Fund Denmark to cover part of its equity contribution. As a result, Scatec’s expected equity investment by the time of commercial operation will total BRL201mn ($36mn).
Long-term sales contract and operational management
To ensure project profitability, Scatec has signed a ten-year power purchase agreement with Statkraft, which will cover approximately 75% of the expected output. The remainder of the electricity will be sold through short, medium, and long-term contracts.
Scatec will maintain a central role in the execution and management of the project. The company acts as engineering, procurement and construction (EPC) manager with a limited contract scope. It will also provide operation, maintenance and asset management services for the plant, continuing its integrated model in the Brazilian market.
Scatec’s Chief Executive Officer, Terje Pilskog, highlighted the importance of this financing for the group’s strategy in the region. According to him, this project strengthens Scatec’s position in Brazil and marks another step in diversifying the company’s South American portfolio.
