Scatec Secures BTG Pactual for Colombian Solar Venture

• Scatec ASA partners with BTG Pactual to launch a 130-MW solar farm in Colombia, marking a major milestone in renewable energy expansion.

Norwegian renewable power producer Scatec ASA has partnered with BTG Pactual Comercializadora de Energia, a subsidiary of Brazilian investment bank Banco BTG Pactual SA, to supply power from its first Colombian solar farm. The 130-MW solar project, located in Narino, will operate under a 15-year power purchase agreement covering 85% of its output, with the rest traded on the Colombian market. The project, estimated at USD 110 million, will be funded through non-recourse financing and equity, with Scatec retaining majority ownership and Norfund as a minority partner.

Scatec will handle the engineering, procurement, and construction of the solar farm, covering 80% of the total capital expenditure, and will also provide operations, maintenance, and asset management services. Financial closure and construction are expected to commence in 2025. CEO Terje Pilskog highlighted the agreement as a significant milestone for Scatec's entry into the Colombian market with a commercially viable project.

How will Scatec's Colombian solar farm impact the local energy market and economy?

• Increased Renewable Energy Capacity: The solar farm will add 130 MW of renewable energy capacity to Colombia's grid, contributing to the country's goals for increasing the share of renewables in its energy mix.
• Energy Market Diversification: By introducing more solar power, the project will help diversify Colombia's energy sources, which are currently heavily reliant on hydropower, thus enhancing energy security and resilience against climate variability.
• Economic Growth and Job Creation: The construction and operation of the solar farm are expected to create jobs, both directly and indirectly, boosting the local economy in Narino and surrounding areas.
• Investment Attraction: The project could attract further foreign investment into Colombia's renewable energy sector, signaling a stable and promising market for international investors.
• Reduction in Carbon Emissions: By replacing fossil fuel-based power generation, the solar farm will contribute to reducing Colombia's carbon footprint, aligning with global climate goals.
• Lower Energy Costs: The introduction of solar power can lead to more competitive energy prices in the long term, benefiting consumers and businesses with potentially lower electricity costs.
• Technological Advancement: The project may encourage the adoption of advanced solar technologies and practices in Colombia, fostering innovation and expertise in the renewable energy sector.
• Community Development: Scatec's involvement in the local community through potential corporate social responsibility initiatives could lead to improved infrastructure and services in the region.