DTEK Renewables is expanding the Tylihulska Wind Power Plant in the Mykolaiv region into a €450 million project ($468 million) alongside the Danish wind turbine producer Vestas.
The company, working as a part of DTEK group under Ukraine’s richest man Rinat Akhmentov’s System Capital Management Holding (SCM), reached a financing agreement with lenders to purchase 64 wind turbines from Vestas, the DTEK press release said.
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The project was announced during the World Economic Forum in Davos.
“The commitment is the largest private sector investment in Ukraine since russia’s [sic] full-scale invasion in 2022 and the biggest ever private investment in Ukraine’s energy sector,” according to the press release.
DTEK will receive financing worth €370 million, backed by guarantees from the state-owned Export and Investment Fund of Denmark (EIFO).
The company will use the borrowed cash to purchase Vestas EnVentus V162-6.0 MW turbines, while financing the rest of the project from its own pocket.
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The DTEK Tylihulska wind power plant has been completed in the first stage. The foundations were laid at the end of 2021, and the first wind turbine was installed in December 2021. After the full-scale Russian invasion in February 2022, DTEK halted construction of the station when six turbines had already been installed, as enemy forces advanced on Mykolaiv and foreign partners were forced to evacuate personnel and equipment.
Today, its capacity is already enough to produce energy equivalent to supply 200,000 households.
DTEK says that they have already laid cables and foundations for the turbines and expect to complete the project by the end of 2026.
“The expanded wind farm will grow from 19 to 83 turbines and increase capacity four-fold from 114 MW to 500 MW. At full capacity, Tylihulska will produce 1.7 TWh of electricity a year – providing enough electricity to power 900,000 Ukrainian homes – the equivalent energy needed to charge every smartphone in the EU for a year,” the company wrote.
Ukraine’s Ministry of Economy says that the Tylihulska wind farm has the potential to become the largest wind farm in Eastern Europe.
“The implementation of the project to build the Tylihulska wind power plant, which should become the largest in Eastern Europe, is a significant step on Ukraine’s path to implementing the National Energy and Climate Plan, strengthening the state’s energy security, and decarbonizing the economy. This is a powerful signal to all our partners and investors that investing in Ukraine’s recovery projects is possible and necessary today,” the ministry’s press release quoted First Deputy Prime Minister and Minister of Economy of Ukraine Yulia Svyrydenko.
The project is expected to reduce CO2 emissions by 1.7 million tons annually, according to the ministry.
DTEK Group is the largest private player in the energy sector of Ukraine, employing a staff of 55,000. The company wants to increase renewable generation capacity up to 2 GW by 2030, the company wrote in the press release.
“In addition to Tylihulska, DTEK is planning a 650 MW wind farm in Poltava, central Ukraine. Work has already begun to deliver 200 MW of large-scale battery storage across the country by next October,” DTEK wrote.
Apart from projects inside Ukraine, DTEK Renewables are also constructing wind, solar and battery projects in Italy, Romania, Poland and Croatia.
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