PowerChina Guizhou Engineering to provide construction financing and EPC services to the project
Image: Progressovka solar project is executed under Ukraine’s 10-year Feed-in-Tariff scheme. Photo: Courtesy of Scatec Solar.
European solar power producer Scatec Solar has started construction of the 148MW Progressovka solar project in Ukraine.
The Progressovka solar plant is located in the southern Ukraine and is expected to provide clean energy for approximately 76,000 households and avoid about 150,000 tonnes of carbon emissions per year upon completion.
Scatec Solar is planning to carry out the project in collaboration with PowerChina Guizhou Engineering.
Under the partnership, PowerChina will provide construction financing and Engineering Procurement and Construction (EPC) services to the project, while Scatec Solar serves as equity investor and provide EPC management, Operation & Maintenance along with Asset Management services.
Scatec Solar CEO Raymond Carlsen said: “The Progressovka project is another confirmation of our strong position in Ukraine where we currently have a project portfolio of 500 MW. The collaboration with Power China on this project gives us access to cost competitive financing as part of a turnkey EPC solution.
“The remaining part of our project portfolio in Ukraine will be realised with Scatec Solar as EPC provider and with financing from the multilateral development banks.”
Power China’s construction financing to cover 65% of the project’s cost
Scatec Solar said that it is in final stage of securing long-term debt financing along with an equity partner for the project. It intends to close both debt financing and equity upon the start of commercial operations of the plant in the first half of 2020.
Progressovka solar project is planned to be realised under 10-year Feed-in-Tariff scheme of Ukraine and is expected to deliver approximately 187GWh per year output.
For the project, public land would be leased for an extended time-period and the solar power plant is expected to deliver power even beyond the feed-in-tariff period.
Scatec Solar claims that with addition of the Progressovka solar project, its assets under construction reaches 229MW and holds project backlog and pipeline of 274MW in Ukraine.