The Syvash plant is composed of 63 wind turbines with a total installed capacity of 250 MW. It is being developed by Total Eren, a France-based renewable Independent Power Producer (IPP) and NBT, a Norwegian developer of renewable energy projects in emerging countries. It will be located in southern Ukraine, on the shores of Lake Syvash.
While Ukraine holds major renewable energy potential, in 2017, it only accounted for 2% of the country’s total generation capacity (excluding major hydropower projects).
Once the project has reached completion, the wind farm will generate the equivalent of the annual electricity consumption of some 270,000 people every year. The plant will also contribute to the diversification of the country’s energy mix and to reducing emissions by some 470,000 tons CO2eq a year.
According to Gregor Quiniou, Head of PROPARCO’s Energy Division for this region, “This project marks an important stage for PROPARCO in Ukraine, as it is Proparco's 1st project in the renewable energies sector. By supporting Ukraine’s low-carbon strategy, this financing is fully in line with AFD Group’s ‘100% Paris Agreement’ commitment.”
Indeed, the power plant is part of the National Renewable Energy Action Plan, which provides for 11% of electricity demand to be produced by renewable energies by 2020.
This EUR 43M loan, which includes a EUR 13m subparticipation from the Interact Climate Change Facility (ICCF), is part of a broader financing of EUR 108m gathering PROPARCO, Black Sea Trade and Development Bank, Finnfund and IFU. This financing comes in addition to the EUR 155m provided in January 2019 by EBRD (with FMO and Green for Growth Fund) and NEFCO.
It is PROPARCO’s second project in Ukraine, following an investment of USD 12m in 2018 in the 3rd Horizon Capital fund, EEGF III, to support the development of SMEs in Ukraine. Find out more about this project.