DTEK Renewables secures €90 million in foreign loans for the financing of phase II of the Primorskaya WEP
DTEK Renewables, the operating company that consolidates all DTEK assets in the renewable energy sector, has reached financial close for 90 million euros to build phase II of the Primorskaya wind electricity plant (WEP) in Zaporizhzhya region.
The loan is provided by a consortium led by Bayerische Landesbank and comprising two further German banks (KfW IPEX-Bank and ODDO BHF Aktiengesellschaft) and secured by export credit agencies (ECA) Euler Hermes and CESCE. The loan term is for 10 years after the commissioning of the wind electric plant.
For Euler Hermes (Germany) as lead ECA it is the third project with DTEK in the renewable energy sector. Earlier, the agency had insured deals to raise loan-based funding to build phase I of Primorskaya WEP and DTEK’s first large-scale wind farm Botievskaya WEP. For the CESCE export credit agency (Spain), it is their first deal in Ukraine in recent times.
“DTEK has proven once again its status as a key investor in the renewable energy sector in Ukraine. Last year, the company’s investments accounted for about a half of the total investments in the renewable energy sector. The latest loan-based financing for the construction of the Primorskaya WEP strengthens the company's role as a long-term partner for leading international financial institutions and industrial equipment supply companies. By providing financing for state-of-the-art and innovative solutions we continue to contribute to the transformation of Ukraine's energy sector and to support its energy independence,” said Philipp Leckebusch, CEO of DTEK Renewables.
“BayernLB is delighted to announce the financial close of the EUR 90 million financing of the second stage of the Primorsk Wind Farm located at the Sea of Azov. Together with the first stage, which has already been successfully completed, the Primorsk Wind Farm will contribute 200 MW of installed capacity of renewable energy and support Ukraine’s efforts to increase the share of green energy to the targeted level in accordance with the adopted EU Renewable Energy Directive 2009. The transaction was supported by Euler Hermes, the German export credit agency, with a reinsurance from CESCE, the Spanish export credit agency, and a syndicate of banks (KfW IPEX and ODDO BHF) led by BayernLB. Thanks to the very professional approach of the investor DTEK Renewables, all the challenges of this complex project could be overcome and will ensure that the project is kept on time”, said Carmen Larraz, Head of Project Finance of Bayerische Landesbank.
Construction of the 100 MW phase II of the Primorskaya WEP started in 2018. The wind park will consist of 26 wind turbines manufactured by GE, with a capacity of 3.8 MW each. Upon completion of all the works (phase I and II), Primorskaya WEP will be equipped with 52 GE 3.8-130/137-110HH wind turbines, one of the most innovative GE onshore turbines. The total value of the investments will be more than €150 million.
The active phase of construction is currently ongoing: all access roads, pile fields and wind turbine foundations have been already completed, installation of the first wind turbines has begun. Completion of commissioning of the whole facility is planned for September 2019.
When both phases are commissioned, the 200 MW Primorskaya WEP will generate between 650–700 million kWh of green energy each year. This amount of energy is enough to provide about 350 thousand Ukrainian households with electricity. The operation of the facility will reduce CO2 emissions by 700 thousand tons per year, through the reduction of use of conventional generation facilities.