Scatec ASA, together with its partners Hydro Rein (part of Norsk Hydro ASA) and Equinor ASA, has announced the supply and production of electricity from the Mendubim solar plant in the state of Rio Grande do Norte, Brazil. The 531 MW solar plant, comprising several projects, represents Scatec’s second venture in Brazil and is a collaborative effort with Norwegian partners Equinor and Hydro Rein.
The companies have secured a 20-year USD-denominated power purchase agreement (PPA) with Alunorte, a supplier of alumina for the aluminium industry, majority owned by Hydro ASA, covering approximately 60 per cent of the anticipated power output. The remaining capacity will be marketed in the Brazilian power market. All three partners have an equal economic interest of 30 per cent in the project. In conjunction with the start of commercial operations, Alunorte has exercised its call option and now holds the remaining 10 per cent.
Recently, Denham Sustainable Infrastructure (DSI) established a new renewables player Pontal Energy in Brazil. This was followed by the transaction with Equinor for the sale of certain Rio Energy assets, the Rio Energy trade name, and the management team platform. Pontal Energy will oversee the continued growth of the assets and pipeline retained by Denham in the transaction.
REGlobal’s Views: Brazil has emerged as an important renewable energy investment destination in South America, and is witnessing the entry of large international players as well. The country’s corporate renewable energy market is also showing promising signs of growth and this PPA with an aluminum company will set an example for other such large energy consumers to take the renewables route.
