Scatec, Equinor to sell jointly owned 117-MW solar farm in Argentina

Norwegian renewable power producer Scatec ASA (OSL:SCATC) and compatriot Equinor ASA (NYSE:EQNR) have agreed to sell their stakes in the 117-MW Guanizuil IIA solar farm in Argentina in a move that will mark Scatec’s exit from the country, a press release said on Thursday.

The solar farm will be acquired by Argentine power producer Central Puerto SA (BCBA:CEPU), which will also buy Scatec’s and Equinor’s shares in a local operating services company under the same agreement.

The Guanizuil IIA solar farm was connected to the grid in 2021 as a project owned by a 50/50 joint venture (JV) between Scatec and Equinor.

In its 2023 second-quarter earnings report, Scatec said that Equinor had provided a non-recourse bridge loan to the JV during construction. The loan had to be refinanced, but due to Argentina’s political and economic situation, the refinancing was not possible.

Scatec further said that offers it received from potential buyers during the second quarter were significantly below the total book value of the project. As a result, the company recognised an impairment charge of NOK 350 million (USD 31.7m/EUR 29.9m) in the second quarter, corresponding to the full book value of the equity investment, it added.

(NOK 1.0 = USD 0.091/EUR 0.086)

Choose your newsletter by Renewables Now. Join for free!