Building up renewables pipeline: INTEGRITES has advised NBT on acquisition of 750 MW wind project in Zaporizhzhia

INTEGRITES has supported NBT, Norwegian wind farm developer, on acquisition of shares in a group of project companies for development of 750 MW in Zaporizhzhia. Construction of the first phase is envisaged to start in 6 months’ time.

INTEGRITES roles was to conduct a full scope due diligence of the project companies, support in drafting, negotiating and closing with the sellers SPA and SHA, corporate and tax structuring of the transaction.

The firm’s project team consists of Dr. Oleksiy Feliv, Managing partner, Anton Babak, Senior Associate and Yulia Nikolaychuk, Junior Associate (both – Corporate and M&A practice) and Dmytro Kyselov, Senior Associate (Energy Practice).

Now INTEGRITES and NBT are working on evaluation of EPC contractors and wind turbine suppliers for these new wind farm projects.

The onshore wind project, named Zophia wind farm, will be developed by NBT together with Ukraine-based Venture Fund. At its full capacity, the Zophia project represents a total investment of approximately €1 billion and will consist of 180 wind turbines. The electricity generated from Zophia will be sold to state-owned company Energorynok, Ukraine’s wholesale electricity market operator and produce approximately 3,2 TWh per year. Once completed, it will become Europe’s largest onshore wind farm and will generate enough electricity to meet the needs of up to 400,000 households in the Zaporizhia region.

Joar Viken, CEO of NBT, stated: “This is our second utility-scale wind project in Ukraine, three times larger than our first one. The improved investment climate over the last few years, resulting from reforms in the energy sector in particular, gives us confidence to increase our investments in Ukraine. The Zophia project is Europe’s largest onshore wind farm with 750 MW capacity and a total investment of EUR 1 billion. NBT continues to work on increasing its pipeline of wind projects in Ukraine and expect to have 1,500 MW operational by the end of 2022. Being a first-mover in raising money in the international project finance market for utility-scale wind power projects in Ukraine, we are in a good position to replicate our story.”

Dr. Oleksiy Feliv, Managing partner at INTEGRITES comments: “We are pleased to see that foreign investors, such as NBT, choose Ukraine to implement their renewable projects. We believe that this project, as well as Syvash wind farm is a good proof that Ukraine is fit for foreign investments in renewables and that the framework corresponds to the investors’ expectations. After commissioning, these projects will contribute to clean energy and energy independence in Ukraine”.

As we have already mentioned in our previous press release, on January 23 in Davos NBT and Total Eren have signed framework agreement on attracting financing for Syvash Project (construction of one of the largest in Europe wind farms in Kherson Oblast, which will also be the largest one in Ukraine) for the total amount of EUR 260 million. The agreement envisages attraction of credit financing (over 70% of the total cost of the project) and own investment, in particular by NBT and Total Eren. EBRD Vice President Alain Pilloux, Joar Viken (NBT) and David Corchia (CEO of Total Eren) signed the agreement with President of Ukraine Petro Poroshenko in attendance.

INTEGRITES – is a regional full-service law firm, headquartered in Kyiv. Currently the Firm is the market leader in terms of the size of wind power projects we have been consulting on (2 GW in total), as well as transaction amounts that have been closed.