Today Scatec Solar announced an agreement with Brazil’s Kroma Energia under which it will build, own and operate four solar PV plants totaling 150 MW in the Brazilian state of Ceará.
Kroma won 20-year power purchase agreements (PPAs) for these projects in last November’s national auction, under an agreement that they will begin producing power by the fourth quarter of 2018.
Scatec estimates that it will invest US$212 in the projects, and expects to begin construction in 2017. The company additionally announced that it will not go ahead with two Brazilian backlog projects totaling 78 MW, citing “more attractive return expectations and a more flexible timeline for executing the new projects”.
Brazil has awarded roughly 3 GW of solar PV in the last 18 months through auctions, however many of these projects are in an uncertain condition related to the crash of the Brazilian Real and difficulty accessing low-cost financing.
In July, the new government of President Michael Temer (PMDB) announced that it would delay the sole 2016 solar auction until December. In August, the government also announced that it was considering "amicable" cancellation of 670 MW of solar projects with contracts awarded in Reals.