Scatec Reaches Close, Starts 130-MW Colombia Solar

• Scatec reaches financial close for 130‑MW Barzalosa solar in Colombia, securing a 15‑year PPA (85% contracted) with BTG Pactual’s unit while balancing merchant upside and scaling LatAm.

Scatec reached financial close and began building Barzalosa, a 130-MW solar plant in Colombia, as the country’s PPA market expands beyond utilities. Revenue is anchored by a 15-year PPA signed in 2025 with a Colombian energy trading unit of Brazil’s Banco BTG Pactual. The offtaker will take 85% of output; the remainder will be sold into Colombia’s power market.

The structure balances merchant upside with bankable contracted cash flows, with financial close signaling the capital stack is secured. Scatec is extending its LatAm footprint through repeatable execution. Over the next 12–18 months, construction cadence and on-time COD will be critical to protecting returns amid higher rates and uneven supply chains.

How does Scatec’s Barzalosa PPA-merchant hybrid de-risk returns amid Colombia’s evolving market?

• Latest global trend: renewables surpassed 30% of world electricity in 2023, with solar the largest annual capacity addition; 2024–2026 expected to accelerate on policy and manufacturing scale-up
  
• Cost dynamics: utility-scale solar PPA prices stabilizing after 2022–23 spikes from polysilicon, freight, and interest rates; modest declines expected as supply chains normalize
  
• Grid bottlenecks: interconnection queues exceed 2 TW in North America; reforms (cluster studies, tighter readiness screens, financial commitments) are shortening timelines in several ISOs
  
• Storage surge: lithium-iron-phosphate dominates new deployments; hybrid solar-plus-storage increasingly bids as firm, four-hour blocks; long-duration pilots (iron-air, flow, thermal) moving to first-of-a-kind scale
  
• Transmission: HVDC backbone proposals advancing to move remote wind/solar to load centers; undergrounded DC in highway/rail corridors gaining traction to ease siting risk
  
• Offshore wind: supply chain localization (monopiles, nacelles, cables) reduces currency and logistics exposure; floating platforms targeting deepwater West Coast, Mediterranean, and Japan
  
• Onshore wind: taller towers and longer blades unlock low-wind sites; repowering of 10–15-year-old fleets boosts capacity factors and extends life with minimal new land use
  
• Permitting reforms: “shot clocks,” concurrent reviews, and digital environmental assessments cutting timelines; community benefit agreements standardizing local value sharing
  
• Domestic manufacturing: rapid expansions in modules, cells, inverters, and trackers; nacelle, blade, and tower factories reopening near ports and rail hubs to cut lead times
  
• Supply chain resilience: diversified polysilicon, wafer, and cell sourcing; traceability tools (blockchain, mass-balance audits) to meet import compliance rules
  
• Corporate procurement: 24/7 carbon-free energy contracts growing; granular certificates tied to hourly emissions delivering higher climate impact than annual RECs
  
• Financial structures: tax credit transferability and direct pay broadening investor base; merchant exposure hedged via basis-insured PPAs and storage arbitrage
  
• Land use: agrivoltaics scaling for specialty crops and pasture; dual-use designs (elevated arrays, wider row spacing) maintain yields and biodiversity
  
• Environmental safeguards: avian-safe siting, bat deterrents, and curtailment algorithms; solar panel recycling and wind blade repurposing hubs expanding
  
• Emerging tech: perovskite-silicon tandems nearing pilot manufacturing; high-efficiency n-type TOPCon and heterojunction gaining share in utility builds
  
• Hydrogen: co-located electrolyzers soaking midday solar, providing grid services; e-fuel offtake from shipping and aviation anchoring project finance
• Demand-side orchestration: virtual power plants aggregating HVAC, EVs, and batteries; dynamic tariffs and real-time APIs enabling flexible load
  
• Buildings: heat pumps outselling gas furnaces in several markets; thermal storage (ice, phase-change) paired with rooftop PV to shave peaks
  
• Transportation: EV managed charging aligns with wind and solar profiles; bidirectional charging pilots provide distribution-level backup
  
• Data centers: hyperscalers signing firmed clean power with storage and geothermal; waste-heat reuse and on-site microgrids reduce grid stress