FMO Acquires 40% Stake in Scatec Solar’s Kamianka Project in Ukraine

Scatec Solar has signed an agreement with FMO, for it to take a 40% equity stake in Scatec Solar’s 32 MW Kamianka project in Ukraine.

Scatec Solar has signed an agreement with FMO, the Dutch development bank, for FMO to take a 40% equity stake in Scatec Solar’s 32 MW Kamianka project in Ukraine. The total investment for the project is estimated at EUR 35 million and is funded by 70 percent non-recourse debt financing from the European Bank for Reconstruction and Development (lead arranger) and FMO.

“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,” said Raymond Carlsen CEO of Scatec Solar.

Scatec Solar is the lead equity investor in the project with 60% ownership, while FMO holds the remaining 40%. Scatec Solar is also the Engineering, Procurement and Construction (EPC) provider and will provide Operation & Maintenance as well as Asset Management services to the power plant. Construction started early 2019 with commercial operation expected in fourth quarter 2019.

“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,” said Linda Broekhuizen, Chief Investment Officer FMO.

The project is being realised under Ukraine’s 10-year Feed-in-Tariff scheme and is expected to produce about 39 GWh per year. 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.

Recently, Scqatec Solar also announced that it has begun construction work on the 148 MW Progressovka solar project in Ukraine. The project will be realised in collaboration with PowerChina Guizhou Engineering Co. Ltd. that will provide construction financing and Engineering Procurement and Construction (EPC) services to the project in Ukraine, while Scatec Solar will be the equity investor and provide EPC management, Operation & Maintenance as well as Asset Management services.