The Joint Venture (JV) will aim to become a significant player in the Brazilian solar market. Statoil will secure a 40 percent equity position in Scatec Solar’s existing 162 MW Apodi project as a first step in the agreement. This project was awarded in the auction process held by ANEEL, the Brazilian Electricity Regulatory Agency, in November 2015. A 20-year Power Purchase Agreement (PPA) has been signed with CCEE, the Brazilian Power Commercialisation Chamber.
The Joint Venture will be responsible for construction, operation and maintenance as well as asset management of the plant. Total project capex is estimated to $215 million. As a part of the transaction, Statoil will inject equity funding for realisation of the project. This corresponds to a consideration of $25 million to Scatec Solar for the 40 percent ownership stake in the project and for participation in the Joint Venture.
“The potential for solar energy in Brazil is substantial and together with Statoil we are increasing our ambitions further in this market” said Raymond Carlsen, CEO of Scatec Solar. “We are bringing into the partnership a strong track record as an integrated independent solar power producer, while Statoil has a strong engagement and experience from Brazil through its other energy activities”.
Irene Rummelhoff, Executive Vice President of New Energy Solutions in Statoil, added that Brazil is a core area for Statoil where the company’s ambition is to deliver safe and sustainable growth in an attractive energy market.
Financing of the Apodi project has been secured through a project financing structure with approximately 65 percent debt leverage. Construction of the solar plant will start imminently with a plan to connect the plant to the grid towards the end of 2018.
Brazil is aiming to further expand its Renewable Energy Programme, having awarded PPAs to wind power projects totalling nearly 12 GW. Over the last years, approximately 3 GW of solar projects have been awarded in three consecutive utility scale solar auctions. The Brazilian government plans to award another 7 GW by 2024.
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