Scatec Solar and FMO enter equity partnership for the Chigirin solar project

Scatec Solar has signed an agreement with FMO, the Dutch development bank, for FMO to take a 40% equity stake in Scatec Solar’s 55 MW Chigirin project in Ukraine.

The total investment for the project is estimated at EUR 54 million (US$60 million) and is funded by non-recourse debt financing from the European Bank for Reconstruction and Development (EBRD), The Nordic Environment Finance Corporation (NEFCO) and Swedfund.

FMO’s equity stake is financed by the Access to Energy Fund, which FMO manages on behalf of the Dutch government.

Scatec Solar is the lead equity investor in the project with 60% ownership, while FMO holds the remaining 40%. Scatec Solar is also the Engineering, Procurement, and Construction (EPC) provider and will provide Operation & Maintenance as well as Asset Management services to the power plant. Construction started mid-2019 with commercial operation expected mid-2020.

The project is being realized under Ukraine’s 10-year Feed-in-Tariff scheme and is expected to produce about 65 GWh per year. Public land will be leased for an extended time period and the solar power plant is expected to deliver power also beyond the Feed-in-tariff period.