FMO buys stake in 55-MW PV project in Ukraine

The Rengy solar park in Ukraine. Source: Scatec Solar

November 20 (Renewables Now) - Dutch development bank FMO has agreed to acquire a 40% equity stake in a 55-MW Ukrainian solar project of Oslo-based green energy firm Scatec Solar ASA (OSL:SSO).

Scatec Solar, which will keep 60% in the Chigirin project, announced the deal on Tuesday. FMO will finance the stake through the Access to Energy Fund it manages on behalf of the Dutch government.

The solar farm is already under construction and is planned to reach commercial operation by the middle of 2020.

The total investment for the Chigirin project amounts to EUR 54 million (USD 60 million). The European Bank for Reconstruction and Development (EBRD), The Nordic Environment Finance Corporation (NEFCO) and Swedfund have provided non-recourse debt financing. The power plant will operate under Ukraine’s 10-year feed-in tariff (FiT) scheme and is expected to generate about 65 GWh annually.

This is the second equity partnership between Scatec Solar and FMO after they partnered on the 32-MW Kamianka solar plant in Ukraine, in which FMO also holds a 40% stake. 

"We are working with FMO as a debt and equity partner on a range of projects in Ukraine and internationally and we expect more cooperation in the years to come," said Scatec chief executive, Raymond Carlsen.

(EUR 1.0 = USD 1.11)

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Before joining Renewables Now, Alex was a UK-focused business news reporter. Now she is covering global news from the renewable energy industry with a special interest in M&A.

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