Norwegian PV project developer Scatec Solar ASA announced it has secured 10-year FIT contracts to build two large-scale solar power plants in Ukraine.
The company said the two facilities will have a capacity of 33 MW and 50 MW, respectively, and that they will be located in the Cherkasy region, in the central part of the country.
Total investment in the two plants is estimated at around €85 million, while project finance has been started with the European Bank of Reconstruction and Development (EBRD) with Scatec being the lead equity investor.
Scatec intends to break ground on the two solar parks by the end of the year, with start of commercial operations scheduled for 2019. PV projects being built between 2017 and 2019 are being granted in Ukraine a FIT of €0.1502 ($0.1765)/kWh.
The Norwegian company initiated discussiond over opportunities to enter the Ukrainian market with the local Ministry of Energy and Coal Industry in March 2017. A year later, the developer’s representatives met with the governor of Cherkasy, Yuriy Tkachenko, to discuss how to implement its solar projects in the region.
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.