Ukraine’s target is to generate 11% of its energy from renewable sources by 2020 in an effort towards more autonomy and less coal intensive production. Since 2014, a feed in tariff programme was launched and more than 1GW of solar capacity have been installed since then. Scatec entered the Ukraine market in 2017 and is currently developing a significant project portfolio in the country.
The Rengy project, situated in the Mykolaiv region in the South of Ukraine, was Scatec's first project in Ukraine. Scatec owns 51% of the project and Rengy Development Group holds the balance. The project was realised under the country’s 10 years Feed-in-Tariff scheme and the plants are expected to deliver power also beyond the Feed-in –tariff period. Equity partner for the solar plant is Rengy (Development), and lender is EBRD.
The Boguslav project, situated in the Kyiv region in central Ukraine. The project is realised under the country’s Feed-in-Tariff scheme. Scatec operates, maintains and manages the plant, which is expected to deliver power beyond the Feed-in-tariff period. The lenders for the project are FMO, Green for Growth Fund (under FMO’s B Facility) and GIEK (unfunded credit guarantee).
The Kamianka project is Scatec’s second project in Ukraine located in the Cherkasy region in central Ukraine. The project is developed, constructed and operated by Scatec and Scatec is also the lead equity investor in the project with 60% ownership, while FMO holds the remaining 40%.The project will be realised under the country’s Feed-in-Tariff scheme and the plants are expected to deliver power also beyond the Feed-in–tariff period. Equity partner for the project is FMO, and lender is EBRD.
The Progressovka project is located in the Mykolaiv region in the South of Ukraine. The project will be realised in collaboration with PowerChina Guizhou Engineering Co. Ltd. that provides construction financing and Engineering Procurement and Construction (EPC) services to the project, while Scatec will be the equity investor and provide EPC management, Operation & Maintenance as well as Asset Management services. The project will be realised under Ukraine’s Feed-in-Tariff scheme and the solar power plant is expected to deliver power also beyond the Feed-in-tariff period. Commercial operation of the plant is expected in second half of 2020. Lender for the project is Power China (construction facility).
The solar plant will be located on a 82 ha site to the east of the Dnieper River, in the Chigirin district in the south-western part of the Cherkasy region of the Ukraine. 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. Commercial operation is expected in second half of 2020. Equity partner for the project is FMO. Lenders are EBRD, NEFCO and Swedfund, and debt leverage is 65%.
In Ukraine, the government is evaluating the current feed-in tariff scheme and working on the transition to a tender scheme for renewable energy.
The 65 MW Kherson project is situated at a very good site, is fully developed and ready to be built from a permitting perspective. The project is well positioned to participate in upcoming tenders.