VLC Renewables and LongWing Energy have reached the financial close on the first phase of a 500MW onshore wind farm in Ukraine.
The initial phase of the Zaporizhia project in the south-east of the country will be 98MW and is expected to be operational in the second quarter of 2020.
To finance the first phase, a $150m (€133m) debt financing package was raised.
The 98MW portion will use 27 GE 3.6-137 turbines, with rotor diameters of 137 metres and heights of 177.2 metres.
The manufacturer will also service the turbines under a 15-year agreement.
The transaction marks GE’s fourth wind farm project in Ukraine to be financed and equipped with the company’s turbine technology.
The Zaporizhia project is VLC Renewables’ first investment since it was formed in June 2018 through a partnership between Low Carbon and Vitol.
The fund is focused on generating significant investment into renewable assets across Europe.
The wind farm will sell its power into the Ukrainian market through a power purchase agreement with a state-owned enterprise and will benefit from a 10-year fixed rate feed-in tariff.
Senior debt financing is being provided by the Overseas Private Investment Corporation, the US Government’s development finance institution.
Other investors include GE Energy Financial Services.
VLC Renewables head John Stuart said: “When complete, Zaporizhia will significantly increase Ukraine’s wind energy capacity, helping to modernise the energy market.
“We hope this will be the first of many projects in eastern Europe, which is ideally placed to benefit from the move towards renewable generation. We are very pleased to close our first deal on such a flagship project.”