Scatec secures 15-year Colombian solar PPA, expands LatAm presence

Scatec ASA has signed a 15-year Power Purchase Agreement (PPA) with BTG Pactual Comercializadora de Energía for a 130 MW solar plant in Colombia. This PPA covers about 85% of the plant's estimated production, with the rest sold locally. The agreement is in Colombian Pesos, adjusted for inflation based on Colombia's Producer Price Index. This project, Scatec's first in Colombia, is in Nariño.

The estimated capital expenditure for the solar plant is $110 million. Scatec will be the Engineering, Procurement and Construction (EPC) provider, covering about 80% of the capex, and will handle Operations & Maintenance (O&M) and Asset Management (AM) services.

The project will be financed through non-recourse financing and equity. Scatec will hold majority ownership, with Norfund as a minority equity partner. Scatec is in advanced negotiations for non-recourse project financing, targeting 65% leverage. Financial close and construction are expected to begin in 2025.