Ireland-based clean technology company, Altostrata and the regional government of the Ukrainian region of Dnipropetrovsk have signed a memorandum of understanding for the construction of a 250 MW solar power plant near the village of Levodka, Pavlograd district.
According to a press release from the regional government, the project is planned to be developed on a 500 hectare surface at a cost of around €255 million.
“We are very interested in cooperation with Ukraine. We start the partnership in the Dnipropetrovsk region. We have found support at the local investment and innovation center. An effective system is being created here that encourages investment, “said the director of Altostrata, Torsten Merkel.
The project is expected to be completed within two years, the local government said. “Investors are not afraid of investing here, as we support projects and guarantee non-interference in doing business,” emphasized the representative of the regional administration, Oleg Kuzman.
Ukraine currently supports large-scale solar through a FIT scheme. The fixed tariff for ground-mounted PV projects connected to the grid between 2017 and 2019 is €0.1502 ($0.1863)/kWh. The Ukrainian government, however, is planning to replace the FIT scheme with an auction mechanism. A time frame for this measure was not provided yet.
Read more about the Ukranian electricity market design in our latest Opinion & Analysis article, written by Svitlana Teush, counsel at Redcliffe Partners law firm in Kyiv, Ukraine.