Published on August 29, 2018
Ukrainian energy group DTEK via its renewables holding company has raised €90m ($105m) in debt financing from a consortium of German banks for the construction of the 100MW first stage of the Primorskaya wind project in Ukraine’s eastern Zaporzhazhya region, near the Sea of Azov.
“BayernLB is delighted to announce the financial close of the €90m financing of the first stage of the Primorsk Wind Farm located at the Sea of Azov,” said Heinz Jetschin, senior director at Bavarian state bank BayernLB, one of the banks in the consortium.
“Together with the second stage, which will be completed in 2019, the Primorskaya Wind Farm will contribute 200MW of installed capacity of renewable energy and support Ukraine’s efforts to increase the share of green energy to the targeted level in accordance with the adopted EU Renewable Energy Directive 2009.”
The transaction was supported by Euler-Hermes, the German export credit agency, and a syndicate of banks led by BayernLB.
GE will supply the first phase of the wind project with 26 of its 3.8MW turbines, with construction scheduled for late 2018, and commissioning planned for early next year.
“Such sustainable interest from international investors in renewable generation in Ukraine gives us confidence in the implementation of our strategic plans – to have 1GW of ‘green’ facilities in the portfolio by 2020,” commented DTEK chief executive Maxim Timchenko.
Timochenko added that Ukraine’s energy strategy aims at reaching a 25% of renewable generation in the country’s energy consumption by 2035.
Ukraine is one of several Eastern European countries that have seen a rising activity in wind development. That trend currently is spearheaded by neighbouring Russia, which has started a series of wind tenders that – together with strict local-content rules – are prompting Western OEMs to build a manufacturing base there.
The two stages of the Primorskaya project are scheduled to be commissioned before 2020, when Ukraine needs to have increased the share of renewables in its energy mix to 11% as part of its commitments to the European Energy Community.