Scatec, a renewable energy solutions provider based in Oslo, Norway, has reached financial close for its 142-megawatt solar photovoltaic plant currently under construction in Minas Gerais, Brazil.

The non-recourse project financing comprises 150 million reais ( US$27 million ) to be provided by Banco de Nordeste do Brasil ( BNB ). The amount corresponds to 30% of the total estimated capital expenditure of 506 million reais. The solar plant is expected to reach commercial operation date ( COD ) in the first half of 2026.

“Securing long-term financing for Rio Urucuia is an important step in delivering this high-quality project and further strengthening our position in Brazil," says Scatec chief executive officer Terje Pilskog. "Construction of the project is progressing as planned, and we look forward to connecting our third solar project in Brazil in 2026.” 

Scatec has previously secured a debt facility of €25 million ( US$29 million ) from Impact Fund Denmark to partially fund its equity share in the project, bringing its expected equity injection by COD to 201 million reais.

The company has signed a 10-year power purchase agreement ( PPA ) with Statkraft for approximately 75% of the expected power produced. The remainder is expected to be sold under short-, medium-, and long-term PPAs.

Scatec holds a 100% ownership stake in the solar project, with the aim to bring in equity partners once COD has been reached, to further enhance value creation. It will also be the engineering, procurement and construction manager for the project, with a limited contract scope. It will further provide asset management, operations and maintenance services to the solar power plant.