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Scatec Solar and FMO enter equity partnership for the Kamianka project in Ukraine

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Scatec Solar has signed an agreement with FMO, the Dutch development bank, for FMO to take a 40 percent equity stake in Scatec Solar’s 32 MW Kamianka project in Ukraine.
Scatec Solar and FMO enter equity partnership for the Kamianka project in Ukraine

The total investment for the project is estimated at 35 million euros and is funded by 70 percent non-recourse debt financing from the European Bank for Reconstruction and Development (lead arranger) and FMO.

Scatec Solar is the lead equity investor in the project with 60 percent ownership, while FMO holds the remaining 40 percent. Scatec Solar is also the Engineering, Procurement and Construction (EPC) provider and will provide Operation & Maintenance as well as Asset Management services to the power plant. Construction started early 2019 with commercial operation expected in fourth quarter 2019.

The project is being realised under Ukraine’s 10-year Feed-in-Tariff scheme and is expected to produce about 39 GWh per year. Public land will be leased for an extended time-period and the solar power plant is expected to deliver power also beyond the Feed-in-tariff period.

“We are pleased to announce this first equity co-investment with our long-term partner FMO” said Raymond Carlsen CEO of Scatec Solar. “We are working with FMO as a debt and equity partner on a range of new project opportunities in Ukraine and internationally and we expect more cooperation in the years to come”.

Linda Broekhuizen, Chief Investment Officer FMO, added that the Kamianka solar plant in Ukraine will provide over 10,000 people with 100 percent green energy and that the project, with strong positive climate impacts, combined with benefits for the local community, fully aligns with FMO’s strategic ambitions.

Also in Ukraine, Scatec Solar has started construction of the 148 MW Progressovka solar project, which will be developed in collaboration with PowerChina Guizhou Engineering Co. Ltd, which will provide construction financing and Engineering Procurement and Construction (EPC) services to the project. Scatec Solar will be the equity investor and provide EPC management, operation and maintenance and asset management services.

The two-year construction financing facility from Power China covers 65 percent of the 124 million euro capex for the project and Scatec Solar is in the advanced stages of securing long-term debt financing as well as an equity partner for the project. Both are expected to be closed upon Commercial Operations of the plant in the first half of 2020. The project, which is located in the southern part of Ukraine, will be realised under Ukraine’s 10-year Feed-in-Tariff scheme and is expected to deliver about 187 GWh per year, providing clean energy for about 76,000 households and helping to avoid 150,000 tonnes of carbon emissions per year. 

Public land will be leased for an extended time-period and the solar power plant is expected to deliver power also beyond the Feed-in-tariff period. Scatec Solar currently has a project portfolio in Ukraine of 500 MW.

In other news, Scatec Solar has reached commercial operation for a second 65 MW power plant in Egypt. This is part of the 400 MW Benban project which is Scatec Solar’s largest project under construction and the first solar plant with bi-facial solar panels, capturing the sun from both sides of the panels to increase the total clean energy generation. Scatec Solar expects to have completed the project during second half of 2019.

In April 2017, Scatec Solar with its partners KLP Norfund and Africa 50 signed a 25-year Power Purchase Agreements with the Government of Egypt for delivery of electricity from six solar plants, equal in size, totaling 400 MW. The estimated annual 870 GWh of electricity produced from Scatec Solar’s plants in Benban will avoid about 350,000 tons of CO2 emissions per year and provide energy for more than 420,000 households in Egypt.

For additional information:

Scatec Solar

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