Norway-based Scatec Solar has entered into agreements with Ukrainian Rengy Development securing projects with a capacity of 47 megawatts (MW) in the Mykolaiv region in southern Ukraine, according to a stock exchange notice from the company issued on Wednesday.
The projects comprising three plants, with an estimated total capital expenditure of €52 million ($49 million), will be realized under Ukraine's feed-in-tariff scheme and are expected to produce about 58 gigawatts/hour per year.
"The project finance process has been initiated with the European Bank of Reconstruction and Development in lead," the statement said, adding financial close and construction start was expected later in 2018 with commercial operation during 2019.
Scatec Solar will own 51 percent of the projects, and will be responsible for the Engineering, Procurement and Construction (EPC) and provide operation and maintenance as well as asset management services to the power plants.
Rengy Development, an independent solar power producer in Ukraine, will own the remaining 49 percent.
Public land will be leased for an extended time period and the plants are expected to deliver power also beyond the 10-year feed-in-tariff period, according to the statement.
Scatec Solar CEO Raymond Carlsen, who signed the agreement and visited Kiev earlier this week, said they were "very happy" to partner with a "strong" local player to further strengthen their position in Ukraine.
With this agreement, Scatec Solar has so far secured 130 MW of projects under the feed-in-tariff scheme in Ukraine.
"We see continued strong commitment by the Ukrainian government to secure growth of clean energy in the country," Carlsen added.
Scatec Solar is an integrated independent solar power producer, with an installation track record of 1,000 MW. The company produces electricity from solar power plants with 322 MW of capacity in the Czech Republic, South Africa, Rwanda, Honduras and Jordan and has 1,092 MW under construction, according to the statement.
The Norwegian solar developer is targeting a capacity of 3.5 gigawatts in operation and under construction by end of 2021.
By Hale Turkes