EBRD provides loan to build solar power plant in Odesa region

The European Bank for Reconstruction and Development (EBRD) has decided to provide a EUR 5.4 million to Teplodar PiVi LLC (Odesa region) for the development, construction and operation of a 4.2 MW solar power plant, the bank's press service has told Ukrinform.

"The Bank is providing a financing package of EUR 5.4 million to Teplodar PiVi LLC in Odesa region for the development, construction and operation of a 4.2 MW solar power plant. The financing arranged by the Bank will include an 8-year EBRD loan of EUR 3.9 million and a 15-year loan of EUR 1.5 million from the Clean Technology Fund (CTF)," reads the statement.

Upon completion, the solar power plant will be connected to the grid and will benefit from Ukraine's green tariff law, under which the government guarantees the purchase at a fixed rate until 2030 of all electricity produced by local renewable power plants.

The new solar energy project is part of the EBRD Ukraine Sustainable Energy Lending Facility (USELF), an investment program of EUR 70 million (EUR 50 million from the EBRD and EUR 20 million from the CTF) designed to provide finance to private local enterprises wishing to invest in renewable energy projects in Ukraine. Technical assistance for project preparation and for regulatory and environmental assessment is funded by the Global Environmental Facility (GEF).

The CTF was established in 2008 to support middle-income countries with their adoption of renewable and energy efficiency technologies that have high potential to minimize long-term greenhouse gas emissions. The fund already finances programs in 15 countries and one region, and is the largest multilateral climate-finance instrument in operation.

The EBRD is the largest financial investor in Ukraine. As of August 1, 2013 the Bank had committed over EUR 8.55 billion ($11.4 billion) across 327 projects in Ukraine.