GE Energy Financial Services, a unit of GE (NYSE: GE), announced today it facilitated the raising of €90MM in project financing for stage I (100-megawatt) of DTEK Renewables B.V. Primorskaya wind electricity plant (Primorskaya WEP), located on the Sea of Azov shore in Zaporizhia region, South Ukraine.
Bayerische Landesbank, a leading German bank based in Munich, led a German banking consortium, which included KfW IPEX-Bank and Bremer Kreditbank, to provide senior debt to the project. The deal is supported by German Export Credit Agency, Euler Hermes, which provided an export credit guarantee for the transaction.
This project was awarded to GE Renewable Energy’s onshore wind business, which has committed to provide 26 of its 3.8-130-110HH wind turbines to the Primorskaya WEP and arrange for the installation/commissioning of the turbines to power the wind farm.
Stage I of Primorskaya WEP is part of a two-phase process to build a 200-MW wind farm in Ukraine. Once fully operational by end of 2019, the Primorsk wind farm, equipped with one the most powerful GE onshore turbines, is expected to generate enough electrical energy to power the equivalent of ~350,000 homes in Ukraine. The financing will support subsequent phases of the project and assist Ukraine in meeting its target of generating 11 percent of its electricity from renewable sources by 2020.
Guto Davies, Managing Director – Global ECA Advisory and Execution Leader, GE Energy Financial Services, said “We’re seeing increased demand for renewables projects in emerging markets as part of their clean energy ambition. Primorskaya WEP highlights GE’s capability in deploying its financial and technological expertise to renewable projects across the emerging markets.”
Peter Wells, Onshore Europe/SSA Leader, GE Renewable Energy, said: “This is an important milestone for GE as we work toward Ukraine’s renewable energy goals. GE Renewable Energy is excited to work with DTEK and supply some of GE’s most innovative wind turbines to the Primorskaya WEP project, enabling affordable, reliable and clean energy to the residents and businesses of the Zaporizhia region.”
Philipp Leckebusch, CEO of DTEK Renewables, said: “DTEK Renewables has proven its major role as a long-standing respected partner in Ukraine for leading international financial institutions and industrial corporations for the supply of the necessary equipment. With our investments in advanced and innovative solutions, we will continue to contribute to the transformation of the Ukrainian energy sector and the sustainable development of the country.”
GE also signed a 20-year Full Service Agreement for the operation and maintenance of the turbines. Additionally, GE Grid Solutions has signed a €4MM contract for the supply of equipment related to the connection of the wind farm to the national grid. Key turbine components will be made in Germany and the nacelle will be built at GE facility in Salzbergen, Germany.