By Swann Bigot, legal expert and consultant in international affairs, for Eurasia Network – July 13, 2018

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Solar panels – Photo credit : Pexels.com

Scatec Solar plans to start construction of two solar power plants in the Cherkasy oblast in Ukraine with a total capacity of 83 MW. The Norwegian company based in Oslo has signed agreements securing two projects with capacity of 33 MW and 50 MW, reported its press service.

The projects will be carried out under the Ukrainian Feed-in-Tariff (FiT) scheme while the solar plants are expected to generate about 106,000 MWh per year, beyond the 10-year FiT period. Land plots will be leased from local municipalities.

The total cost of these two solar farms would amount to EUR 85 million. The Norwegian company would expect funds from the European Bank for Reconstruction and Development (EBRD). Financial close and construction start will come later in 2018 with commercial operation of the solar farms scheduled in 2019.

Read also : An Irish company to invest € 255 million in a solar farm in Ukraine

“We are very enthusiastic about securing our first two projects in Ukraine, and we see it as a first step to develop a larger portfolio of solar power plants in the country. Ukraine is actively working to change their energy mix and increase the share of power supplied from renewables. We are very pleased to once again partner with EBRD to promote renewables and open a new market for solar“, said Raymond Carlsen, the CEO of Scatec Solar.

Scatec Solar will be the leading equity investor in the two projects and aims to secure additional equity partners. The Norwegian company will be in charge of engineering, procurement and construction processes. It will also provide operation and maintenance as well as asset management services to the two solar farms.

25% of renewable energy share by 2035

The Ukrainian government set in October 2014 the goal to increase renewable energy share in the national power mix to 11% by 2020. The country is indeed committed to reduce its carbon emissions and fight climate change.

In accordance with the Energy Strategy of Ukraine until 2035, adopted in 2017, the country must reach a renewable energy share of 11% by 2020 and 25% by 2035. This share is less than 2% as of June 2018, announced Ostap Semerak, Minister of Ecology of Ukraine since April 2016.

Ukraine added 257 MW of new renewable energy capacities in 2017, according the National Commission for State Regulation of Energy and Public Utilities. Solar power represents 82% of this amount. The total installed capacity increased by 23% between 2016 and 2017, to reach 1,375 MW.

Read also : A 100 MW solar farm will open in Kazakhstan

Scatec Solar is an integrated and independent solar power producer, currently generating electricity from 322 MW of solar power plants in the Czech Republic, South Africa, Rwanda, Honduras and Jordan and has 1,092 MW under construction.

The Norwegian company targets a capacity of 3.5 GW in operation and under construction by the end of 2021, revealed the press release.

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© Copyright 2019 – Swann Bigot, lawyer and consultant in international affairs.

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