Scatec secures third large-scale PV project in Ukraine

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Norwegian PV project developer, Scatec Solar ASA has signed an agreement with Ukraine-based renewable energy company, Rengy Development for the development of an unspecified number of PV projects with a combined capacity of 47 MW in the Mykolaiv region in the south of Ukraine.

The company said all of the projects have already been awarded a 10-year FIT contract, and that the project finance process has been initiated with the European Bank of Reconstruction and Development (EBRD).

Total capex for the projects is expected to reach €52 million, the company said, while commercial operation of the facilities is planned for 2019.

Under the terms of the agreement, Scatec Solar will have a 51% stake in the projects, while the remaining interest will be owned by Rengy Development.

Scatec is already building two PV plants with a capacity of 33 MW and 50 MW, respectively, in the Cherkasy region, in the central part of the country. Overall investment in the two projects is estimated at around €85 million, with the EBRD also acting as a lender.

The Norwegian company initiated discussions 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.