Statoil has entered a deal with Scatec Solar to buy 40% shares in the construction ready 162MW Brazil’s Apodi solar asset. The Norwegian independent solar power producer, Scatec Solar, aims to provide electricity to nearly 160,000 households, and they have gone forward to sign another exclusive contract with Statoil for cooperation in the development of future solar projects across the said country. The company will also be acquiring 50% shares in the project execution company, a significant step that will help them participate in building and operating various other solar projects across the world.

Statoil will pay US$25 mn for the Shares

As per the executive vice president of New Energy Solutions in Statoil, Irene Rummelhoff, the energy economy of Brazil has a strong potential as far as safe and sustainable energy market is concerned. This set will be an add-on to the company that is already producing Peregrino oil field. For this acquisition, Statoil will be paying a price of US$25.0 mn, with the construction of Apodi solar asset expected to start in October 2017 and aim to start delivering electricity by the end of 2018.

Located in Brazil’s municipality of Quixeré in the state of Ceará, Apodi solar asset has full permission for grid connection and holds 20-year power purchase agreement (PPA), which was awarded to them in 2015 at an auction by Brazilian government. With technological advancements, the potential of solar energy has increased multiple fold in Brazil and Raymond Carlsen, the SEO of Scatec Solar hopes that this partnership with Statoil will strengthen them as an integrated independent solar power producer.