Business

Dutch development bank to buy stake in Ukrainian energy project

The Dutch Entrepreneurial Development Bank (FMO) will acquire a 40 per cent equity stake in a project run by Norway’s Scatec Solar that will build a solar power plant in Ukraine’s Cherkasy region with a capacity of 55 Megawatts.

The renewable energy project is estimated at 54 million euros with funding from the European Bank for Reconstruction and Development (EBRD), the Nordic Environment Finance Corporation (NEFCO) and Swedfund.

FMO, whose equity stake is financed by the Access to Energy Fund, will manage on behalf of the Dutch government.

“After our first co-investment in the Kamianka solar plant, we are pleased to partner again with Scatec Solar. This second co-investment demonstrates to us the potential of renewable energy in Ukraine,” said Linda Broekhuizen, the chief financial officer of FMO, adding that supporting Ukraine in transitioning to a low-carbon system, is aligned with their strategy to increase green investments and mitigate climate change.

Scatec Solar CEO Raymond Carlsen noted that his company was working with FMO as a debt and equity partner on a number of projects both in Ukraine and internationally. “We expect more cooperation in the years to come,” he said.

The Norwegian green energy manufacturer will remain the leading equity investor in the project with 60 per cent of ownership and remains responsible for engineering, procurement, construction, constructions, operations and management.

The solar power plant’s construction started in mid-2019 and is expected to be completed by mid-2020. Electricity production is estimated at 65 Gigawatt hours per year.

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