Scatec has entered into a 15-year power purchase agreement (PPA) with BTG Pactual Comercializadora de Energía, a Colombian energy trading subsidiary of Banco BTG Pactual S.A. Brazil. The agreement will secure about 85 per cent of the output from a 130 MW solar project, while the rest of it will be traded in Colombia’s electricity market.
The project will be Scatec’s first in Colombia and will be developed in Nariño, around 100 kms west of Bogotá. The total capital expenditure is estimated at $110 million. Scatec will act as the engineering, procurement and construction provider for approximately 80 per cent of this investment. The company will also deliver operations and maintenance, along with asset management services for the project.
The project will be financed through a mix of non-recourse loans and equity, with Scatec retaining a majority stake and Norfund holding a minority share. Discussions are underway with financial institutions to secure non-recourse project financing at a targeted leverage of 65 per cent. Both the financial close and construction are anticipated in 2025.
