Scatec Solar has signed an agreement with the Spanish Company, Grupo Gransolar, to acquire a majority stake in two solar projects totalling 78 MW (DC) in the state of Piaui in Brazil.The projects were bid and won by Gransolar in the auction process held by ANEEL, the Brazilian Electricity Regulatory Agency, in August 2015. The projects will enter into 20-year Power Purchase Agreements (PPAs) with ANEEL. Located in the state of Piaui in North-Eastern Brazil, the solar power plants are expected to provide about 164,000 MWh annually to the grid, generating revenues of about BRL 55 million per year (USD 14 million).
“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,” said Raymond Carlsen, CEO of Scatec Solar.
“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” said Domingo Vegas, President of Grupo Gransolar.
Brazil is targeting to further expand its Renewable Energy Program. PPAs have already been awarded to wind power projects totalling nearly 12 GW. Over the past one and a half years, approximately 3 GW of solar projects have been awarded in three consecutive utility scale solar auctions. The government plans to award another 7 GW by 2024.
Scatec Solar ASA will build, own and operate the two power plants in Piaui. Scatec Solar will own 70 percent of the equity and Gran Solar 30 percent. Total capital expenditure to realise the plants is estimated to BRL 418 million (USD 105 million) and construction is expected to start in the first quarter 2017.