Scatec ASA has reached financial close for its 142 MW solar photovoltaic plant currently under construction in Minas Gerais, Brazil. The Norwegian renewable energy company secured non-recourse project financing of BRL 150 million (USD 27 million) from Banco de Nordeste do Brasil (BNB).

The financing amount represents 30% of the total estimated capital expenditure of BRL 506 million (USD 91 million) for the solar project. The solar plant is expected to reach commercial operation date in the first half of 2026.

Project Leadership and Strategic Position

Scatec CEO Terje Pilskog emphasized the significance of the financing milestone for the company's Brazilian operations. "Securing long-term financing for Rio Urucuia is an important step in delivering this high-quality project and further strengthening our position in Brazil," Pilskog stated. He noted that construction of the project is progressing as planned and expressed anticipation for connecting the company's third solar project in Brazil in 2026.

The Rio Urucuia project represents Scatec's continued expansion in the Brazilian renewable energy market, building on the company's existing solar portfolio in the country.

Comprehensive Financing Structure

Beyond the primary financing from BNB, Scatec has established additional funding sources for the project. The company previously secured a debt facility of EUR 25 million from Impact Fund Denmark to partially fund Scatec's equity share in the project. This additional financing brings Scatec's expected equity injection by commercial operation date to BRL 201 million (USD 36 million).

The multi-source financing structure demonstrates the project's financial viability and the confidence of international lenders in the solar development. The combination of Brazilian and European funding sources provides a diversified capital base for the project's completion.

Power Purchase Agreements and Market Strategy

Scatec has established a comprehensive power sales strategy for the Rio Urucuia project through multiple power purchase agreements. The company signed a 10-year power purchase agreement with Statkraft for approximately 75% of the expected power production from the solar facility.

The remaining 25% of the power output is expected to be sold through various contract structures, including short, medium, and long-term power purchase agreements. This diversified sales approach provides multiple revenue streams and market exposure for the project's electricity generation.

Ownership Structure and Operational Management

Scatec currently holds a 100% ownership stake in the solar project, maintaining full control during the construction and initial operational phases. However, the company has indicated plans to bring in equity partners once the commercial operation date has been reached, with the strategic aim to further enhance value creation through partnership arrangements. The company will serve as the EPC (Engineering, Procurement, and Construction) manager for the project, though with a limited contract scope. This role allows Scatec to maintain oversight of the construction process while managing costs and timelines effectively.

Following the project's completion, Scatec will continue its involvement through comprehensive service agreements. The company will provide operations and maintenance services to ensure optimal performance of the solar power plant throughout its operational life. Additionally, Scatec will offer asset management services, maintaining long-term involvement in the project's performance and profitability.

The integrated approach from construction management through long-term operations positions Scatec as a full-service renewable energy developer and operator in the Brazilian market. This comprehensive service model allows the company to maintain revenue streams and operational control beyond the initial construction phase, supporting long-term value creation for the Rio Urucuia solar project.

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