Scatec Solar secures financing for 164 MW of PV projects

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Norwegian solar company Scatec Solar has announced this week that it has secured project financing for two large-scale solar PV developments in the U.S. and Central American nation, Honduras.

At 104 MW and 60 MW respectively, these two PV projects represent a sizeable addition to Scatec Solar’s global portfolio, with the Honduras plant the first foray for the company into the growing Latin America market.

The U.S. project, located in Utah, is the 104 MW Red Hills solar power plant. Financing agreements for the installation totaled $157 million, with total investment costs estimated at $188 million. The development represents Scatec Solar’s first wholly owned project in the U.S.

Scatec Solar has developed the project and its financing, which includes tax equity, debt financing and sponsor equity. Once completed, the Red Hills solar park will be eligible for a 30% U.S. solar investment tax credit.

“We are pleased to finalize financing for the Red Hills project and begin construction of this first project in the U.S. where we retain ownership,” said Scatec Solar CEO Raymond Carlsen. “When complete, Red Hills will be our largest developed and constructed project in North America.”

Red Hills will be located on 650 acres of privately owned land in Parowan, Utah, and will utilize 325,000 PV modules installed on single-axis trackers.

The 60 MW Honduras project – dubbed Agua Fria (cold water) – has attracted financing agreements to the tune of $90 million, with total investment reaching $125 million. Scatec Solar will construct, operate and maintain the plant, while also retaining a 40% ownership. Fellow Norwegian firm Norfund/KLP will hold 30%, as will local developer PEMSA.

“Realization of the Agua Fria project is an important milestone for us, representing our first step into the very promising Latin American solar market,” added Carlsen.

Completion of the 60 MW plant is expected in the second half of 2015. The installation will use more than 200,000 PV modules attached to a fixed tilt system.