DTEK Renewables has raised EUR90 million (US$105.25 million) in debt financing for the construction of the first stage of the Primorskaya wind project, located in the Zaporizhzhya region of Ukraine. Together with the second stage, which will be completed in 2019, the project will contribute 200 MW of installed capacity of renewable energy.
The loan for the construction of the 100 MW first stage of Primorskaya was issued by a consortium of German banks (Bayerische Landesbank, KfW IPEX-Bank, Bremer Kreditbank and others) with risk coverage provided by German export credit agency (ECA) Euler Hermes. The loan term is 10 years after the technical commissioning of the plant.
This is the first external debt financing agreement of such scale to come into effect in the Ukrainian renewable energy market over the last five years. ECA participation facilitated successful execution of this credit agreement under the background of slightly improving sovereign debt rating and more stable macroeconomic environment of the Ukraine.
For the first construction phase, 26 GE wind turbines with a unit capacity of 3.8 MW will be installed at the Primorskaya site. Completion of construction is scheduled for late 2018, and the plant will join the United Energy Systems of Ukraine and start 'green' power generation at the beginning of next year.
DTEK aims to have 1,000 MW of ‘green’ facilities in its portfolio by 2020. The Ukrainian government's Energy Strategy has set a target of 25% renewable generation share in energy consumption by 2035.
