Scatec Solar secures 78 MW solar projects in Brazil

Scatec Solar has signed an agreement with the Spanish Company, Grupo Gransolar, to acquire a majority stake in two solar projects totalling 78 MW located in the state of Piaui in North-Eastern Brazil. Scatec Solar will own 70 percent of the equity and Gran Solar 30 percent.

The projects were won by Gransolar in the bidding process held by ANEEL, the Brazilian Electricity Regulatory Agency, in August 2015.

The solar power plants are expected to provide about 164,000 MWh annually to the grid, generating revenues of about US$14 million per year. Upon completion the projects will enter into 20-year Power Purchase Agreements (PPAs) with ANEEL. 

Scatec Solar will build, own and operate the two power plants in Piaui. The total cost for the development of the plants estimated is about US$105 million and construction is expected to start in the first quarter 2017.

Raymond Carlsen, CEO of Scatec Solar, commented:

"The solar market in Brazil has significant long term potential and we want to take part in the development of this market. Norway and Brazil have strong bilateral relations with deep alliances within several industries and with these first projects we believe Scatec Solar is well positioned to participate in this market going forward."

Domingo Vegas, President of Grupo Gransolar, said:

"These projects are an important milestone in Gransolar's journey. We are proud of teaming up with Scatec Solar a strategic partner with whom we share values and entrepreneur culture. Brazil is a target solar market for Gransolar, having already deployed our subsidiaries Ingenia and PV Hardware in the country. We aim to have start production of our tracking system by the end of 2016."