Scatec Solar reaches financial close on 47 MW Ukranian solar project

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The European Bank for Reconstruction and Development (EBRD) and Black Sea Trade and Development Bank are equally sharing a credit facility of €36 million for the 47 MW PV project. This represents around 70% of the €52 million overall project costs.

The debt agreement will be offered under a favorable non-recourse credit facility for the project, which is set for immediate construction and should be operational next year.

As announced in July, Scatec Solar will own 51% of the project, with the Rengy Development Group, which specializes in Eastern European renewable energy projects, holding the remaining shares.

Scatec will provide engineering procurement and construction, operation and maintenance, and asset management services to the solar plant, while Rengy will be responsible for more nuanced local assistance. The latter is one of the largest producers of solar power in Ukraine, having invested in 70 MW worth of projects in the country since its founding in 2009.

When complete, the system shall operate under Ukraine’s 10-year feed-in tariff scheme, and is expected to produce around 58 GWh per annum. Further government support is seen in public land being offered for the project.

Today’s announcement is another instance of Ukrainian energy transition efforts being in full swing. The country set to pass the 1 GW installed solar capacity milestone this year – an optimistic record for the quickly developing former Soviet nation.

2018’s upward solar trajectory in the country can largely be atributed to the FITs, which offer €0.1502/kWh for projects connected to the grid between 2017 and 2019. The tariff scheme is set to stay in operation until 2030.

State-owned utilities are also putting their fingers in the solar pie. The nation’s Naftogas, for instance, is diversifying its operations, having recently announced planned solar parks. Further optimism can be seen in the surge of rooftop solar, which has been catalyzed by the government’s net metering scheme. Installed capacity reached 121 MW in November.

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