The Project will contribute significantly toward the goal to increase non-hydro RE power generation capacity from about 0.1 MW at present to 1.6 GW by 2020, mostly from wind.


Ukraine has a large but underdeveloped potential for renewable energy (RE) including large wind resources. These projects face significant barriers to financing due to lack of track-record in this market, as well as lack of experience with RE project lending amongst local financial institutions (FIs).

Ukraine Renewable Energy Direct Lending Facility (UREDLF) focuses on financing small-scale RE projects. Direct financing of large-scale private sector RE projects is also a priority to reduce risk and overall costs of RE, create access to long-term project financing, support initial commercial scale projects and demonstrate project financing methods. EBRD expects the Project to be the first large wind project in Ukraine financed on a non-recourse basis. The Project will have important demonstration value for RE project finance in Ukraine. The Project operates in the newly constructed Novoazovskiy Wind Park located in the Donetsk. The first phase of 25 MW has been operational since July 2011. The additional 32.5 MW will be constructed in the second phase.

Objectives and Outputs:

The capability of the Project sponsors and the already operational first phase mitigate the Project risks. EBRD team will conduct complete due diligence.

The site’s wind resource is well-known due to the existing wind farm and data collected for more than two years. The Project is developed based on an independent feasibility study in 2010.

The power purchase agreement (PPA) will be completed similar to the first phase at an energy-only tariff of 0.113 €/kWh, appropriate for intermittent wind projects. The tariff and PPA terms are based on the new Ukraine Green Tariff law of 2009. The tariff is indexed monthly to the Hrynivia/Euro exchange rate to mitigate foreign exchange risk. The power purchaser is the completely state-owned State Enterprise Energorynok (same as 1st phase), the government approved monopoly operator of the wholesale electricity market.

The long-term site lease is secured. Interconnection authorization with the Donetskoblenergo for 50 MW has been obtained. Expansion to 57.5 MW is expected soon. Additional interconnection capacity is available, with ongoing upgrades to the nearest existing substation. The same wind turbines (2.5 MW per unit) and supplier Fürhlander GmBH as in the first phase will be used. A fixed rate per MW installed capacity is envisioned by future O&M contracts, stabilizing operating costs while minimizing risks.

The Project sponsors are already shareholders in an EBRD project and very committed to wind energy development in Ukraine, with an estimated 900 MW of new wind energy projects in their pipeline. Multiple contractors including local civil and electrical contractors together with Fürhlander are used for the wind farm construction. The EBRD financing will disburse after construction is complete and accepted, so construction risk will be borne by the Project sponsors. The wind farm is expected to be fully operational by March 2012.

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

Project Details
Project Document | Independent Review Letter | Proposed Decision
Approved on March 19, 2012 (Approved Decision)
Approved amount(s):
USD 20.69 million