June 3 (Renewables Now) - Oslo-based Scatec Solar ASA (OSL:SSO) said today it has initiated construction work on the 148-MW Progressovka solar project in Ukraine, to be executed in collaboration with PowerChina Guizhou Engineering Co Ltd.
The Chinese company is providing the needed construction financing and engineering procurement and construction (EPC) services, while the Norwegian party will be the equity investor. In addition, Scatec Solar will deliver operation and maintenance (O&M) and asset management services.
The total cost of the project is estimated at EUR 124 million (USD 139m) and the two-year construction financing facility from Power China covers 65% of that. The Progressovka scheme will be realised under the country’s 10-year feed-in tariff (FiT).
The plant is expected to achieve commercial operations in the first half of 2020, at which point the company will have secured long-term debt financing and an equity partner.
At present, Scatec Solar’s project portfolio in Ukraine amounts to 500 MW. The remaining projects within that portfolio will be built by the company itself as EPC provider, using financing from the multilateral development banks, according to CEO Raymond Carlsen.
(EUR 1.0 = USD 1.120)