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

Source: press release, 19 November 2019

Scatec Solar’s 55 MW Chigirin project in Ukraine (photo: Scatec Solar)
Scatec Solar’s 55 MW Chigirin project in Ukraine (photo: Scatec Solar)

Scatec Solar has signed an agreement with FMO, the Dutch development bank, for FMO to take a 40% equity stake in Scatec Solar’s 55 MW Chigirin project in Ukraine. The total investment for the project is estimated at EUR 54 million and is funded by non-recourse debt financing from the European Bank for Reconstruction and Development (EBRD), The Nordic Environment Finance Corporation (NEFCO) and Swedfund. FMO’s equity stake is financed by the Access to Energy Fund, which FMO manages on behalf of the Dutch government.

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

“After our first co-investment in the Kamianka solar plant, we are pleased to partner again with Scatec Solar. This second co-investment demonstrates to us the potential of renewable energy in Ukraine. Supporting Ukraine in transitioning to a low-carbon system, is aligned with our strategy to increase our green investments and mitigate climate change,” says Linda Broekhuizen, Chief Investment Officer FMO.

Scatec Solar is the lead equity investor in the project with 60% ownership, while FMO holds the remaining 40%. Scatec Solar is also the engineering, procurement and construction (EPC) provider and will provide operation and maintenance as well as asset management services to the power plant. Construction started mid 2019 with commercial operation expected mid-2020.

The project is being realised under Ukraine’s 10-year Feed-in-Tariff scheme and is expected to produce about 65 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.