Norwegian renewable energy developer Scatec, Hydro Rein, and Equinor have commenced the commercial operations of the Mendubim solar plant, a 531MW facility located in the state of Rio Grande do Norte, Brazil.
This represents Scatec’s second investment in the country.
The solar plant consists of multiple projects and has a 20-year power purchase agreement (PPA) with Alunorte, a major alumina supplier owned mainly by Hydro.
The PPA ensures the purchase of 60% of the plant’s anticipated power output, while the remaining electricity will be sold in the Brazilian power market.
Each partner holds a 30% stake in the project, and with the start of commercial operations, Alunorte has exercised its option to acquire the remaining 10% interest in the project.
Scatec CEO Terje Pilskog stated: “The Mendubim solar power plant marks a pivotal milestone in realising our strategic objectives and reinforces our position in a prominent renewable energy growth market, bolstered by our partners Equinor and Hydro Rein.
“The burgeoning solar energy market in Brazil aligns with our commitment to sustainable progress, and we are excited to advance this impactful project with approximately three million tonnes of carbon dioxide equivalents avoided.”
The operational milestone will increase Equinor’s share of power production in Brazil by approximately 30%, with expectations to surpass 1.4 terawatt-hours in 2024.
The Mendubim project represents the initial venture of the Norwegian oil and gas producer into Brazil’s deregulated power market, which enhances its presence in the region’s energy sector.
Equinor’s senior vice-president of renewables onshore and markets, Olav Kolbeinstveit, emphasized the significance of the collaboration with Scatec and Hydro Rein in launching a large-scale solar plant in Brazil.
With over twenty years of experience in Brazil, Equinor views the country as a key area for sustainable and profitable growth in the long term.
By investing in renewable energy, we are supporting Brazil’s ambitions towards a diverse energy mix and helping to meet the expected power demand growth in the country.”
By investing in renewable energy, we are supporting Brazil’s ambitions towards a diverse energy mix and helping to meet the expected power demand growth in the country.
