GE’s Energy Financial Services will provide $150m financing for LongWing Energy’s Phase 1 of Zaporizhia wind farm in Ukraine
Image: GE to finance Ukrainian wind project. Photo: Courtesy of Markus Distelrath/Pixabay
GE, VLC Renewables and LongWing Energy have reached financial close on a $150m debt financing package for the first phase of the Zaporizhia wind farm in southeast Ukraine.
The wind farm, which will be located in the Zaporizhia region, is the fourth wind farm in the country to include GE wind turbines.
When operational, the wind farm is expected to generate more than 330,000MWh of clean energy annually, which could be supplied to 170,000 households.
The financing will support the construction of the first phase, which will include 27 of GE’s 3.6MW onshore wind turbines, each with a rotor diameter of 137m and with a hub height of 110m.
Power from the Zaporizhia wind farm to be bought by Energorynok
Scheduled to reach commercial operations next year and contribute significantly to the country’s 2030 Paris Agreement goals by reducing its reliance on gas imports, the electricity generated from the wind farm will be sold under a power purchase agreement (PPA) to state-owned Ukrainian enterprise, Energorynok.
Energorynok will benefit from the 10-year fixed rate feed-in tariff. Following the installation of the total capacity of up to 500MW, the project could be the largest wind farm in the country to be financed on an international non-recourse project financing basis.
Upon full completion, the wind farm could generate enough electricity to power about 780,000 Ukrainian homes.
GE Energy Financial Services (GE EFS) stated that it worked with the Overseas Private Investment Corporation (OPIC), the US Government’s development finance institution, as a minority equity investor, to unlock project financing for the first phase of Zaporizhia Wind Farm. OPIC, with JP Morgan as hedge provider, will offer the debt financing for the project.
GE Energy Financial Services global renewable energy leader Gaurav Raniwala said: “The Zaporizhia Wind Farm demonstrates GE’s unique ability to unlock investments and deliver bespoke financing and technology solutions that drive sustainable economic growth in key renewable energy markets.
“By connecting OPIC financing and GE’s leading technology to the project, GE and LongWing will enable construction and pave the way for clean energy production in Ukraine.”
OPIC Acting President and CEO David Bohigian said: “OPIC is proud to support this project, which will advance energy independence and security in Ukraine.
“The plant will help Ukraine meet its energy demands and reduce reliance on imported sources, powering homes and businesses across the country.”
The Zaporizhia wind farm will be supported by a 15-year full-service agreement.
The role of VLC Renewables
VLC Renewables, a Jersey-based fund established by Low Carbon and Vitol to invest in renewable energy generation, acted as a co-investor in the deal alongside GE.
The organisation’s head John Stuart said: “VLC Renewables was set up to deliver renewables projects at scale and we are delighted to support the construction of one of Europe’s largest onshore wind farms.
“When complete, Zaporizhia will significantly increase Ukraine’s wind energy capacity, helping to modernise the energy market.
“We hope this will be the first of many projects in Eastern Europe, which is ideally placed to benefit from the move towards renewable generation. We are very pleased to close our first deal on such a flagship project.”
Simon Hale, investment director at Vitol, added: “Large onshore wind will be key to decarbonising Europe’s power markets.
“As a major participant in energy markets, Vitol recognises the need to evolve its power business in Europe and we are pleased to support Ukraine’s path towards a more sustainable future.”