Scatec Solar has signed agreements securing two projects with capacity of 33 MW and 50 MW in the Cherkassy region of Ukraine.
The projects will completed under Ukraine’s Feed-in-Tariff (FiT) scheme and the two plants are expected to produce about 106,000 MWh per year. Land will be leased for an extended time-period from the local municipalities and the plants are expected to deliver power also beyond the 10-year FiT period. The total capex for the projects is estimated to 85 million euros and the project finance process has been initiated with the European Bank of Reconstruction and Development (EBRD). Financial close and construction start is expected later in 2018 with commercial operation during 2019.
“We are very enthusiastic about securing our first two projects in Ukraine to our backlog, and we see it as a first step to develop a larger portfolio of solar power plants in the country” said Scatec Solar CEO Raymond Carlsen. “Ukraine is actively working to change their energy mix and increase the share of power supplied from renewables. We are very pleased to once again partner with EBRD to promote renewables and open a new market for solar”.
Scatec Solar will be the lead equity investor in the projects and is aiming to secure additional equity partners. The company will act as the Engineering, Procurement and Construction (EPC) provider and provide Operation & Maintenance as well as Asset Management services to the power plants.