The European Bank for Reconstruction and Development (EBRD) and FMO are providing 70% of the total estimated cost €35m for the project
Image: Officials of Scatec Solar and FMO at the signing event. Photo: Courtesy of Scatec Solar.
Norwegian solar developer Scatec Solar has signed an agreement to sell 40% of stake in its 32 MW Kamianka project in Ukraine to Dutch development bank FMO.
The European Bank for Reconstruction and Development (EBRD) and FMO are providing 70% of the total estimated cost €35m for the project, under a non-recourse debt financing.
Scatec Solar will own the majority 60% of stake in the solar project
Scatec Solar will own the majority 60% of stake in the solar project, while FMO will hold the remaining stake. The solar developer is also the engineering, procurement and construction (EPC) provider and will offer operation & maintenance along with asset management services to the solar plant.
The solar plant’s construction started earlier this year and its commercial operations are expected to begin in this fourth quarter.
Scatec Solar CEO Raymond Carlsen said: “We are pleased to announce this first equity co-investment with our long-term partner FMO. We are working with FMO as a debt and equity partner on a range of new project opportunities in Ukraine and internationally and we expect more cooperation in the years to come.”
The solar project, which could generate up to 39GWh of clean energy per year, is being realised under Ukraine’s 10-year Feed-in-Tariff scheme.
FMO chief investment officer Linda Broekhuizen said: “We are happy to continue our long-standing relationship with Scatec Solar, both as debt and equity partner. The Kamianka solar plant in Ukraine will provide over 10,000 people with 100% green energy. This project with strong positive climate impacts, combined with benefits for the local community, fully aligns with our strategic ambitions.”
Few days ago, the company announced the start of construction of 148 MW Progressovka solar project in Ukraine.
The project is being supported by PowerChina Guizhou Engineering, which will provide construction financing and Engineering Procurement and Construction (EPC) services to the project.