Scatec Solar has commenced construction of the 148 MW Progressovka solar project in Ukraine.
The project will be realised in collaboration with PowerChina Guizhou Engineering Co. Ltd. that will provide construction financing and Engineering Procurement and Construction (EPC) services to the project, while Scatec Solar will be the equity investor and provide EPC management, Operation & Maintenance as well as Asset Management services.
“The Progressovka project is another confirmation of our strong position in Ukraine where we currently have a project portfolio of 500 MW. The collaboration with Power China on this project gives us access to cost competitive financing as part of a turn key EPC solution. The remaining part of our project portfolio in Ukraine will be realised with Scatec Solar as EPC provider and with financing from the multilateral development banks,” says Raymond Carlsen, CEO of Scatec Solar.
The 2-year construction financing facility from Power China covers 65% of the EUR 124 million capex for the project. Scatec Solar is in advanced stages of securing long-term debt financing as well as an equity partner for the project. Both is expected to be closed upon Commercial Operations of the plant in the first half of 2020.
The project will be realised under Ukraine’s 10-year Feed-in-Tariff scheme and is expected to deliver about 187 GWh per year. The plant located in the southern Ukraine will be providing clean energy for about 76,000 households and contribute to avoid about 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.
With this project Scatec Solar has 229 MW under construction and project backlog and pipeline of 274 MW in Ukraine. Globally Scatec Solar now has 779 MW in operation and 1,026 MW under construction, and a project backlog and pipeline of 4.7 GW.