Scatec Secures $27M for 142-MW Brazilian Solar Project

• Scatec ASA secures BRL 150 million for its 142-MW solar plant in Brazil, powering 145,000 homes and cutting CO₂ by 150,000 tonnes annually. Completion set for Q2 2026.

Scatec ASA has achieved financial close for its 142-MW Rio Urucuia solar plant in Minas Gerais, Brazil, securing BRL 150 million (USD 27 million) in long-term debt from Brazilian lenders. This financing covers 60% of the project's BRL 260 million capital cost, with repayment over 18 years from power-purchase-agreement revenues. Construction began in May, with module installation set for November and full commissioning by Q2 2026. The plant will generate 300 GWh annually, powering 145,000 households and reducing CO₂ emissions by 150,000 tonnes per year.

Scatec, co-developing with Equinox Energia, retains 70% equity and EPC oversight. The project benefits from a 20-year inflation-indexed tariff under Brazil’s A-6 energy auction framework, protecting it from wholesale-price fluctuations. This development supports Scatec's 1.9-GW South American pipeline and its global 2027 goal of 4.5 GW in operation. CFO Mikkel Tørud highlighted the project's bankability despite higher interest rates. Brazil's solar sector continues to grow, with strong PPA pricing and a maturing lending environment, demonstrating investor confidence in utility-scale PV projects.

How does Scatec's Rio Urucuia solar plant impact Brazil's renewable energy landscape?

• Increased Renewable Capacity: The Rio Urucuia solar plant adds 142 MW to Brazil's renewable energy capacity, contributing to the country's goal of increasing its share of clean energy sources.
• Economic Growth and Job Creation: The construction and operation of the plant are expected to create jobs and stimulate economic growth in the Minas Gerais region, supporting local communities.
• Energy Security and Independence: By diversifying its energy mix with more solar power, Brazil enhances its energy security and reduces dependence on fossil fuels and imported energy.
• Environmental Benefits: The plant's annual reduction of 150,000 tonnes of CO₂ emissions supports Brazil's climate goals and commitments under international agreements like the Paris Agreement.
• Technological Advancement: The project showcases advancements in solar technology and project management, potentially setting a benchmark for future solar developments in Brazil.
• Investor Confidence: The successful financial close and backing by Brazilian lenders reflect strong investor confidence in Brazil's renewable energy sector, encouraging further investments.
• Policy Support and Stability: The 20-year inflation-indexed tariff under the A-6 energy auction framework provides financial stability and predictability, making renewable projects more attractive to investors.
• Contribution to National Goals: The project aligns with Brazil's national energy strategy to increase the share of renewables in its energy mix, supporting the country's transition to a low-carbon economy.
• Scatec's Strategic Growth: The project is a key component of Scatec's strategy to expand its footprint in South America and achieve its global target of 4.5 GW in operation by 2027.
• Market Maturity: The development of the Rio Urucuia plant indicates a maturing solar market in Brazil, with improved PPA pricing and a supportive lending environment.