European Bank for Reconstruction & Development, by Anton Usov,
Published on January 24, 2019
The EBRD is supporting energy security and reduced pollution in Ukraine by arranging a syndicated loan of €150 million loan for the construction of a 250 MW windfarm in the Kherson region of southern Ukraine.
The loan will be extended to the local developer SyvashEnergoProm LLC, co-owned by renewable energy groups Total Eren of France and NBT of Norway, for the construction of the initial 133 MW phase. The farm is expected to begin power generation by the end of 2019.
The package will consist of a €75 million EBRD A-loan and a B-Loan of up to €75 million from the Green for Growth Fund (GGF) and the Netherlands Development Finance Company (FMO). A parallel loan of €5 million will be provided by the Nordic Environment Finance Corporation (NEFCO).
Once the project is fully commissioned, it is expected to reduce CO2 emissions by 470,000 tonnes annually, and to produce over 850,000 MWh of renewable energy each year – enough to provide power to the Ukrainian municipality of Rivne, which has approximately 100,000 households.
The wind farm is the latest investment under the EBRD’s €250 million Ukraine Sustainable Energy Lending Facility III (USELF III) framework approved by the Bank in July 2018. USELF III builds on two previous programmes co-financed by the EBRD and the Clean Technology Fund, which yielded 13 renewable energy projects in Ukraine with an aggregate installed capacity of 151 MW.
Speaking at the signing ceremony in Davos yesterday, EBRD President Suma Chakrabarti said, “We are delighted to be supporting the two world class developers who will build Ukraine’s largest windfarm. This shows that Ukraine’s commitment to carry out energy sector reforms is increasing the investor confidence needed to achieve the country’s energy transition. This project is good news for Ukraine, investors and for the planet.”
The EBRD is the largest international financial investor in Ukraine. Since the start of its operations in the country in 1993, the Bank has made a cumulative commitment of almost €13.1 billion across some 418 projects in Ukraine.