Scatec Solar constructs solar power in Ukraine with Norwegian state guarantees

Ukraine is utilizing Norwegian solar power to reduce its use of coal and nuclear energy. The Norwegian state guarantees NOK 145 million of the funding for a new 54 MW solar power plant located south of the capital Kiev. GIEK has provided NOK 1 billion (EUR 100 million) in guarantees for a number of solar projects in Ukraine in 2019.

Photo: Scatec Solar

Ukraine has resolved to phase out its old nuclear power plants, some as old as Chernobyl. The Norwegian solar power company Scatec Solar is now building new, clean energy in Ukraine. In a press release earlier today, the company announced the closing of long-term loan financing for the Boguslav facility. GIEK provides EUR 14.3 million in loan guarantees to the company that will build and own the solar park. The Dutch development bank FMO and Green for Growth Fund (GGF) also contribute to the funding.

- Ukraine is determined to align itself with EU energy standards. This requires more diversified and cleaner energy sources. Norwegian Scatec Solar has unique expertise in constructing and operating solar projects internationally. I congratulate Ukraine and the company on this milestone. This agreement strengthens the relationship between Norway, Ukraine and Europe even further, says Minister of Industry and Trade Torbjørn Røe Isaksen.

GIEK has guaranteed for Scatec Solar's projects on several continents over the past few years, including South Africa, Egypt, Brazil, Malaysia and Honduras. GIEK has covered financial risk associated with prepayments, delivery and long-term financing. In total, GIEK has issued almost NOK 1 billion in guarantees to Scatec Solar's projects in Ukraine so far this year.

- Ukraine is a challenging market. Therefore, GIEK has utilised a scheme dedicated to projects with a high development effect. We are going the extra mile to promote Norwegian exports and investments abroad, and clean energy is a particularly high priority for us, says GIEK CEO Wenche Nistad.