Norwegian energy giant Equinor has announced its final investment decision for the 140-MWp Serra da Babilônia (SdB) Solar Park, a landmark project set to create the company’s first hybrid solar and wind energy complex in Brazil. The new solar facility will be built adjacent to Equinor’s existing 223-MW Serra da Babilônia I wind farm in the state of Bahia.
This strategic move leverages significant synergies by utilizing the wind farm’s existing grid connection, which avoids the need for new infrastructure and enhances overall output. The hybrid model allows for complementary power generation, supplying solar energy to the grid when the wind project is not using its full capacity, thereby reducing intermittency and creating a more stable supply of renewable energy.
The development will be managed by Rio Energy, Equinor’s Brazilian onshore renewables subsidiary acquired in 2023. This project marks the first investment decision made since the acquisition and will be Rio Energy’s inaugural solar project. Marcos Meireles, CEO of Rio Energy, commented on the milestone: “SdB Solar represents the first investment decision made under Equinor’s ownership and will be Rio Energy’s inaugural solar project. This milestone is significant for us, and our team is highly motivated to execute the project safely and efficiently.”
Construction is scheduled to commence in September 2024, with the plant expected to begin commercial operations by the end of 2025. The electricity generated will be marketed by Equinor’s energy trading house, Danske Commodities, in a move aligned with the company’s strategy for profitable growth in Brazil.
“We are delighted to approve this investment just seven months after acquiring Rio Energy,” stated Veronica Coelho, Equinor’s country manager in Brazil. “Our ownership of this platform provides a solid foundation for developing a profitable renewables portfolio in Brazil by leveraging Rio Energy’s capabilities and maximizing synergies with our trading house, Danske Commodities.”
The SdB Solar Complex further solidifies Equinor’s growing presence in Northeast Brazil. The company already operates the 162-MW Apodi solar park and the 531-MW Mendubim solar complex in the country and holds a development pipeline of over 1.5 GW of solar and wind projects through Rio Energy. The new project is expected to deliver returns consistent with the company’s guidance for its renewable energy investments.
Christian Lie Hansen, vice president of onshore renewables Americas, emphasized the project’s strategic importance: “With the approval of the SdB Solar Complex, we now have approximately 600 MW of solar and wind projects either producing power or under construction in the country. This investment underscores Brazil’s importance as a critical region for achieving our ambition to lead in the energy transition.”
Sources for Equinor Approves 140-MWp Solar Park Project in Bahia, Brazil
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