Production start at the Mendubim solar plant
The 531 MW Mendubim solar plant in Brazil has come into operation. This marks a 30% increase in Equinor’s equity power production in Brazil.
“Mendubim represents an important contribution to Equinor’s diversified energy offering in Brazil that includes a robust oil and gas portfolio and an attractive renewables position,” says Veronica Coelho, Equinor’s country manager in Brazil.
Mendubim will annually produce 1.2 TWh of power.
Around 60% of the power will be sold on a 20-year USD-denominated power purchase agreement (PPA) with Alunorte, one of the world’s leading suppliers of alumina for the aluminium industry.
The remaining production will be sold in the power market in Brazil.
The asset is expected to deliver real base project returns in the middle of Equinor’s guided range for renewables of 4-8%.
Important achievement by the Mendubim partnership
The project is developed and operated as a joint venture between Scatec, Hydro Rein and Equinor. All three partners have an equal economic interest of 30% in the project. In conjunction with the start of commercial operations, Alunorte has exercised its call option and now holds the remaining 10%.
Building a power portfolio in Brazil
Brazil is the largest power market in South America, with expected significant demand growth. Deregulation of the power market is ongoing, and the de-regulated market is now accounting for about 40% of total consumption.
With Mendubim in operation, Equinor increases its equity power production in Brazil by around 30%, bringing it to over 1,4 TWh during 2024. Through Mendubim, Equinor also for the first time enters the de-regulated power market in Brazil.
Equinor’s total renewables power generation in 2023 was ~ 2 TWh with an outlook to double it in 2024.
Equinor’s renewables position in Brazil includes three assets in commercial production: the 162 MW Apodi solar plant (44%), the 531 MW Mendubim solar plant (30%) and the 223 MW Serra da Babilônia 1 onshore wind farm (100%). There is also an over 1,5 GW pipeline of solar and onshore wind projects being matured by Equinor’s fully owned subsidiary Rio Energy.