Scatec, Equinor to buy 117-MW solar project in Argentina

Norwegian companies Scatec Solar ASA (OSL:SSO) and Equinor ASA (NYSE:EQNR), formerly Statoil, have agreed to acquire the shovel-ready 117-MW Guanizul 2A solar project in Argentina.

Each of the two companies will buy a 50% stake in the project from Portuguese developer Martifer Renewables. The transactions are pending approvals from certain authorities.

The pair is already working on a solar project in Brazil, Apodi (162 MW), but this is its first solar development in Argentina. The partners expect to make a final investment decision later this year so they could complete the plant and start production in late 2019.

“We see several additional opportunities in the country based on excellent solar irradiation as well as government support for renewables," said Raymond Carlsen, CEO of Scatec Solar.

The G2A project is located in the San Juan region of Argentina. It won a 20-year power purchase agreement (PPA) in the December 2017 RenovAr auction, with a fixed price equivalent to USD 50 (EUR 43.2) per MWh.

Scatec Solar and Equinor estimate they will need to spend some USD 95 million to realise the project. About 40% of the sum will come from the partners in the form of equity, while the remaining 60% will be covered by a construction bridge loan provided by Equinor.

(USD 1.0 = EUR 0.864)

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