Norsk Solar (“Norsk Solar”, OSEBX ticker: NSOL) announced that the Board of Directors of Nordic Impact Cooperation AS (“NIC”), an investment company jointly owned by Norsk Solar, Norfund and Finnfund, has made a positive investment decision for the construction of six solar PV plants with a capacity of 18 MW in Brazil.
The plants are part of the previously announced 37 MW development agreement signed with corporate offtaker Órigo Energia, a renewable energy pioneer in Brazil whose shareholders include TPG ART, Mitsui and the Brazilian impact investment fund manager MOV. Long-term power purchase agreements with 25-year tenor are signed for 24 of the 37 MW in the development agreement.
“Norsk Solar is pleased with today’s investment decision, and we are eager to move forward with construction of the first power plants in the Órigo Energia development agreement along with our partners. There is no time to waste in meeting Brazil’s soaring energy demand with reliable, affordable clean power,” said Øyvind L. Vesterdal, CEO in Norsk Solar.
First investment for Nordic Impact Cooperation in Brazil
The investment in the 18 MW Norsk Solar project is the second investment made by Nordic Impact Cooperation (NIC) since its establishment, and its first investment in Brazil. NIC is an investment company with EUR 19 million earmarked for investments in Norsk Solar-developed projects within the C&I segment and other related projects in high-growth markets. Norfund, the Norwegian Investment Fund for Developing Countries, recently joined Finnfund and Norsk Solar as a partner in NIC.
Notice to proceed to construction
Following the positive investment decision, the Board of Directors in Norsk Solar issued a notice to proceed to the construction phase together with development and construction partner GDSolar, a leader in the development of solar energy in Brazil. The total CAPEX is equal to USD 21.2 million.