The deal was signed with Brazilian firm Kroma Energia and its partners, which won the projects in an auction that took place in November 2015.
The projects, which will be located in the state of Ceará, have 20-year power purchase agreements with ANEEL, Brazil’s electricity regulator.
Upon completion, the soalr plants are expected to generate about 305,000MWh every year and earn revenues of up to BRL95m ($28m).
According to the PPA, the solar plants should begin their operations within the fourth quarter of 2018.
Scatec Solar plans to invest BRL720m ($212m) in the construction of the solar plants. Work on the projects is expected to begin in 2017.
Scatec Solar CEO Raymond Carlsen said: "With these projects, we are securing a strong foothold in Brazil, a large and growing solar market.
“We see positive developments in the Brazilian economy and continued government support for renewables."
Scatec Solar said that it will not move forward with its plans to construct two backlog projects totalling 78MW in Brazil. It stated that there are more attractive return expectations and the timeline being flexible to execute the new projects.
Brazil has been speeding up its renewable energy program. The country’s energy regulatory authority has already signed PPAs for about 12GW. In the past one and half years, about 3GW of solar projects were awarded in three consecutive utility scale solar auctions.
The Brazilian government intends to award another 7GW by the year 2024 to further expand its renewable energy program.
Image: Scatec Solar build, operate and own four solar plants totalling 150MW in Brazil. Photo: Courtesy of franky242/FreeDigitalPhotos.net.
