IPPToday #345: NBT and Total Eren raise US$175 million for largest renewable energy project in Ukraine
- NBT AS
- Total Eren
- European Bank for Reconstruction and Development (EBRD)
- Green for Growth Fund
- Nordic Environment Finance Corporation (NEFCO)
- Energorynok State Enterprise
- PowerChina International Group
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NBT AS and Total Eren SA have signed definitive financing agreements for the first phase of a 250 MW wind project located in the Kherson region of Ukraine, signifying the first internationally financed large-scale wind farm in Ukraine.
The so-called Syvash project represents a EUR380 million (US$432.8 million) investment. Consisting of 64 wind turbines, the wind farm will be located on 1,300 hectares of land in the southern Kherson region. Once completed, it is expected to become the country’s largest renewable energy project.
An A/B loan of up to EUR155 million (US$176.5 million) has been raised for the construction of the initial 133 MW phase. It will consist of a EUR75 million (US$85.4 million) EBRD loan, while B-Loans of up to EUR75 million will be provided jointly by the Green for Growth Fund (GGF) and the Netherlands Development Finance Company (FMO). A parallel loan of EUR5 million (US$5.7 million) will be provided by the Nordic Environment Finance Corporation (NEFCO).
The electricity generated by Syvash will be sold to state-owned Energorynok - Ukraine’s wholesale electricity market operator.
Once the full project is constructed, it will have a planned production of 850 GWh per year, and will generate enough electricity to meet the needs of approximately 100,000 households in the Ukrainian municipality of Rivne. It is expected to reduce CO2 emissions by 470,000 tonnes per year, hence creating a positive impact on the environment.
The Engineering, Procurement and Construction (EPC) contract has been signed with PowerChina and Nordex Group. Construction work is expected to start in a few weeks. The farm is expected to begin power generation by the end of 2019.