Scatec Solar Begins Construction on 148 MW Solar Plant in Ukraine

Scatec Solar has 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.

“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”, said Raymond Carlsen, CEO of Scatec Solar.

The two-year construction financing facility from Power China covers 65% of the EUR 124 million capex for the project. Scatec Solar is in advanced stages of securing long-term debt financing as well as an equity partner for the project. Both are expected to be closed upon commercial operations of the plant in the first half of 2020.

The project will be realised under Ukraine’s 10-year Feed-in-Tariff scheme and is expected to deliver about 187 GWh per year. The plant located in southern Ukraine will be providing clean energy for about 76,000 households and contribute to avoiding about 150,000 tonnes of carbon emissions 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.

In May, the Norwegian firm announced that it had partnered with MT Energy, a Vietnamese energy company, to develop, finance, construct and operate large-scale solar projects in Vietnam. The strategic collaboration agreement covers three projects located in Binh Phuoc, Quang Tri, and Nghe An provinces. The projects total 485 MW and are targeted to be realised under a new feed-in tariff regime that is expected to be launched later this year.