With the aim of expanding its renewable energy projects around the world, including Brazil, its first plant in partnership with Scatec Solar is at an accelerated pace
Equinor signed with Scatec Solar in October 2017 signed a partnership agreement to build a solar power plant in Ceará that will power around 160 homes. The two companies will also extend this partnership to future projects. The works began in August at full speed and the plates are already being installed, check out the video below:
Equinor will also acquire a 50% stake in the company that will execute the project, allowing it to participate in the design and realization of new solar energy projects in the future.
''Brazil is a strategic country for Equinor, where our ambition is to promote safe and sustainable growth in an energy market that is significant. Entering the solar energy segment in Brazil reinforces our portfolio of activities, which includes Campo de Peregrino, in addition to the discoveries of Carcará and Pão de Açúcar, yet to be developed. We are thrilled to have embarked on our first solar project with an experienced partner like Scatec Solar, says Irene Rummelhoff, Executive Vice President New Energy Solutions at Statoil.
Equinor will pay a combined purchase price of USD 25 million for the asset and execution company. The construction phase of the project will start in October this year, with the aim of providing electricity from the end of 2018. The total investment in the project is estimated at USD 215 million. The Apodi solar project will be financed by a financial loan (65% of the value) and by the shareholders' own resources (35%), of which USD 30 million correspond to Statoil's share.
Project ready to start construction
Located in the municipality of Quixeré, in the State of Ceará, the development has full permission for connection to the electrical grid. The asset has a 20-year energy purchase agreement (PPA), obtained in 2015, in an auction organized by the Brazilian government, with an inflation-adjusted energy delivery price equivalent to 104 USD/MWh in 2017.
With this transaction, Scatec Solar retains another 40% stake in the venture, while ApodiPar holds the remaining 20%.
''As part of our strategy to actively complement our oil and natural gas portfolio with profitable renewable energy sources, until now we have focused on offshore wind energy, where we have a unique competitive advantage from our 40 years of energy activities. oil and gas. The Apodi project is a first step for us to enter the solar market and evaluate how this segment can present profitable growth opportunities with the possibility of expansion”, says Rummelhoff.
The construction and operations phase for this project will be led by Scatec Paste and Equinor will contribute staff and services from Brazil and Norway.
Solar energy growth opportunities
The advancement of technology and the reduction in costs have made the solar segment even more attractive, surpassing traditional energy sources in important markets. Worldwide, the use of photovoltaic panels has been growing by approximately 50% per year, considering the last 10 years. It is expected to be an important source of renewable energy in the future.
In Brazil, over the past few years, approximately 3 GW of solar projects have been acquired in three consecutive auctions. Another 7GW should be offered by 2024.
''The potential of the solar energy sector in Brazil is growing and, together with Equinor, we are further increasing our ambitions in this market. We are bringing a strong track record as an independent solar energy producer to this partnership, while Equinor has extensive involvement and experience in Brazil through its other energy activities,'' says Raymond Carlsen, CEO of Scatec Solar.
Scatec Solar is an independent solar energy producer in Norway, with plants in operation producing 322 MW of energy. In addition, the company has other important solar energy projects in its portfolio.
ApodiPar is a Brazilian consortium formed by three local investors.
About Equinor's renewable projects
Equinor already has a sizeable renewables portfolio, with the capacity to power more than 1 million homes with offshore wind energy.
Equinor operates the Sheringham Shoal wind farm in the UK, which has been in production since 2012. The Dudgeon offshore wind farm in the UK, also operated by Statoil – and the world's first floating offshore wind farm, Hywind Scotland – begin production. produce in 2017.
In 2016, Equinor also acquired 50% of the Arkona offshore wind farm in Germany, which will deliver power in 2019.
