GE Capital has reached the financial close of €90 million for DTEK Renewables’ 200 MW wind farm project, Primorskaya Wind Farm.
GE Capital’s Global Capital Advisory business, a unit of GE, has reached the financial close of €90 million for DTEK Renewables’ 200 MW wind farm project, Primorskaya Wind Electric Plant (Primorsk). The project financing package was reached with a German banking consortium and two European export credit agencies for the construction of phase II of a wind farm in the southern region of Zaporizhia, Ukraine.
A banking consortium led by Bayerische Landesbank and comprising two further German banks (KfW IPEX-Bank and ODDO BHF Aktiengesellschaft) will provide the senior debt for an amount of €90 million to the project. The deal is supported by the German export credit agency (ECA), Euler Hermes, which is acting on behalf and for account of the Federal Republic of Germany and will provide an export credit insurance for the senior debt alongside the Spanish ECA, CESCE, which will provide reinsurance to Euler Hermes for approximately one-third of the financing.
Guto Davies, Managing Director – Global ECA Advisory and Execution Leader, GE Capital, said, “Reaching financial close ensures the completion of the project and illustrates the confidence of European financial institutions to invest in key renewable projects in emerging markets. Primorsk highlights GE’s capability in connecting finance and technology to game-changing renewable projects in complicated markets looking for clean and sustainable energy sources for the future.”
Phase II of Primorsk is part of DTEK’s two-phase process to build a 200 MW wind farm in Ukraine. Phase I, also with a capacity of 100MW, has already started operation in the same region of Zaporizhia. To-date, 26 wind turbines for phase I have been commissioned and are already generating electricity. Upon completion of all the works (phase I and II), the output of the Primorsk will be 200 MW of clean energy supplied to the country’s power grid. In total, Primorsk will be equipped with 52 GE 3.8-130/137-110HH wind turbines, one of the most powerful GE onshore turbines and is expected to generate enough electrical energy to power the equivalent of ~350,000 homes in Ukraine.
Peter Wells, Onshore Europe/SSA Leader, GE Renewable Energy, said, “We are excited to be working with DTEK again on phase II of the wind farm project in Ukraine. By supplying some of GE’s most innovative wind turbines, the project will enable affordable, reliable and clean energy to the residents and businesses of the Zaporizhia region.”
Commercial operations of phase II is expected to be complete by the end of Q3 2019. Primorsk will assist Ukraine in meeting its target of generating 11 percent of its electricity from renewable sources by 2020. It’s estimated that the operation of the facility will reduce CO2 emissions into the atmosphere by 700 thousand tonnes per year.