The European Bank for Reconstruction and Development (EBRD) has arranged a syndicated loan of €150m to local developer SyvashEnergoProm for the construction of a 250MW wind farm in the Kherson region of southern Ukraine.
SyvashEnergoProm is co-owned by renewable energy groups Total Eren of France and NBT of Norway.
The loan will be provided for the construction of the initial 133MW phase of the wind farm, which is expected to begin power generation by the end of 2019.
The package will consist of a €75m EBRD A-loan and a B-Loan of up to €75m from the Green for Growth Fund (GGF) and the Netherlands Development Finance Company (FMO).
Nordic Environment Finance Corporation (NEFCO) will provide a parallel loan of €5m.
Once the project is commissioned, it is expected to reduce CO2 emissions by 470,000 tonnes annually, and produce more than 850,000MWh of renewable energy each year, enough to provide power to the Ukrainian municipality of Rivne, which has around 100,000 households.
The investment is provided under the EBRD’s €250m Ukraine Sustainable Energy Lending Facility III (USELF III) framework approved by the bank in July 2018.
Two previous programmes, co-financed by the EBRD and the Clean Technology Fund, yielded 13 renewable energy projects in Ukraine with an aggregate installed capacity of 151MW.
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 has been the largest international financial investor in Ukraine. Since the beginning of its operations in the country in 1993, the bank has made a cumulative commitment of around €13.1bn across 418 projects in Ukraine.
Image: EBRD arranges €150m loan for largest wind farm in Ukraine. Photo: Courtesy of European Bank for Reconstruction and Development.