Financial Closure For 55 MW Ukraine PV Plant

Scatec Solar Secures €53 Million Financing For 55 MW Chigirin Solar Project Under Construction In Ukraine With EBRD, NEFCO & Swedfund Providing Debt Financing; Company Looking For Equity Partners
01:21 AM (Beijing Time) - 02. July 2019

The 55 MW project in Ukraine for which Scatec Solar has secured financing from EBRD and others is currently under construction in Cherkasy region. (Photo Credit: Scatec Solar)

Key Takeaways

  • Scatec Solar has closed financing for 55 MW solar power project capacity in Ukraine
  • EBRD, NEFCO and Swedfund have provided debt financing of €37 million ($42 million) to cover 70% project costs
  • Scatec Solar is in the process of securing additional equity investors for the project along with the company being the lead equity investor
  • The 55 MW Chigirin project is scheduled to be commissioned in H1/2020 and generate around 65 GWh of clean power annually

Scatec Solar has achieved financial closure for its 55 MW solar PV project in Ukraine. Along with its partners the Norwegian company has managed to secure a total amount of €53 million ($60 million). Credit facilities adding up to €37 million ($42 million) come from the European Bank for Reconstruction and Development (EBRD), the Nordic Environment Finance Corporation (NEFCO) and Swedfund.

Having covered 70% of project costs with non-recourse debt financing from the international lenders, Scatec Solar itself will be the lead equity investor for the project. The company is working towards securing additional equity partners for the project.

The 55 MW Chigirin project in Central Ukraine’s Cherkasy region is currently under construction with commercial operations expected to begin in H1/2020. Scatec Solar will also provide EPC and O&M services to the plant, along with asset management.

On completion, the project is expected to generate 65 GWh of clean solar power annually. The power will be reimbursed under Ukraine’s 10-year feed-in-tariff (FIT) scheme; the plant is planned to continue operations beyond the FIT period as well.

In June 2019, the Norwegian company commenced construction on the 148 MW Progressovka Solar Project in Ukraine and announced selling a 40% equity stake in its 32 MW Kamianka project in the Eastern European country to FMO (see Scatec Solar Breaks Ground On 148 MW PV Project).

In Ukraine, Scatec Solar has 282 MW under construction with a project backlog running up to 123 MW. In total, it has 844 MW in operation globally, while its project backlog and pipeline runs into 4.6 GW and over 1 GW projects under construction.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani