Oslo, 19 November 2019: 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 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.
“We are pleased to announce this second equity co-investment with our long-term partner FMO. We are working with FMO as a debt and equity partner on a range of projects in Ukraine and internationally and we expect more cooperation in the years to come”, says Raymond Carlsen CEO of Scatec Solar.
“After our first co-investment in the Kamianka solar plant, we are pleased to partner again with Scatec Solar. This second co-investment demonstrates to us the potential of renewable energy in Ukraine. Supporting Ukraine in transitioning to a low-carbon system, is aligned with our strategy to increase our green investments and mitigate climate change”, says Linda Broekhuizen, Chief Investment Officer FMO.
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 realised 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.
For further information, please contact:
Mikkel Tørud, CFO
tel: +47 976 99 144
Ingrid Aarsnes, Communication & IR
tel: +47 950 38 364
For online use of photos, please make sure you credit – Photo: Scatec Solar.
FMO is the Dutch entrepreneurial development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a more than 45-year proven track-record of empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: Financial Institutions, Energy, and Agribusiness, Food & Water. With a committed portfolio of EUR 9.6 billion spanning over 82 countries, FMO is one of the larger bilateral private sector developments banks globally.
About Scatec Solar
Scatec Solar is an integrated independent solar power producer, delivering affordable, rapidly deployable and sustainable clean energy worldwide. A long- term player, Scatec Solar develops, builds, owns, operates and maintains solar power plants and has an installation track record of more than 1.3 GW. The company has a total of 1.9 GW in operation and under construction on four continents.
With an established global presence and a significant project pipeline, the company is targeting a capacity of 4.5 GW in operation and under construction by end of 2021. Scatec Solar is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SSO’. To learn more, visit www.scatecsolar.com.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act