Ukraine’s largest private investor in the energy sector of Ukraine, DTEK Group, signed a Memorandum of Understanding with Denmark’s Vestas to complete the construction of the largest wind farm in Eastern Europe on. The project is supported by the European Commission and the governments of Ukraine and Denmark and is expected to cost €650 million.
The agreement was signed on Sunday at the UN COP28 climate conference in Dubai in the presence of European Commissioner for Energy Kadri Simson and Minister of Energy of Ukraine German Galushchenko (via video link).
According to a press release issued by DTEK, the windfarm project is aligned to the broad development of distributed generation across Ukraine and is a concept approved by President Volodymyr Zelenskyy. The company says assets such as wind turbines, which are dispersed over a wide area, have proved to be more resilient during the war and bring Ukraine closer to its ultimate goal to become a green energy hub for Europe.
DTEK CEO Maxim Timchenko said “Believing in our victory, we will not wait for the end of the war to attract Western or our own capital to create new infrastructure.” He added “Today, we are busy restoring not only what the occupier is destroying, but also building a new energy system and new power plants.”
According to Timchenko, the Tyligulska windfarm will significantly increase the stability of Ukraine’s energy system, as well as help strengthen the country’s energy security, and enable Ukraine to become a decarbonization leader that can act as an energy hub for Europe.
The installed capacity of the Tyligulska Wind Power Plant will be 500 megawatts, and the windfarm will be located 400 Km from Kyiv, roughly 85 Km from the border with Moldova.
Under the agreement, Denmark’s Vestas, the world’s leading manufacturer of wind turbines, will supply wind turbines to Ukraine for the construction of the second stage of the Tyligulska windfarm.
The second stage of the windfarm will consist of 64 wind turbines (of 6 MW each) with a total capacity of 384 MW. The first stage with a capacity of 114 MW was commissioned in the spring of 2023.
Vestas CEO Henrik Andersen said his company is pleased to expand it’s partnership with DTEK “and build the Tyligulska project to support the reconstruction of Ukraine’s energy sector and show that Ukraine is open for business.”
“The project is becoming a reality under extraordinary circumstances, and we look forward to working with DTEK on the final steps towards financial closure.” Andersen says supporting such a project, can re-emphasize the EU’s support of Ukraine.
Combined, the first and second phases of DTEK Tyligulska windfarm will have a capacity of around 500 MW (83 wind turbines). The plant will be capable of generating about 1.7 TWh of electricity annually – enough for the needs of 900,000 households. It is expected the project will save 1.7 million tons of CO2 that would otherwise be emitted.
DTEK is ready to start construction of stage two in Q2 2024 and expects to complete it by the end of 2025. The installed wind turbines are expected to be gradually connected to the grid from the end of 2024.
Investments for phase two amount to 450 million euros and are to be financed by the company and leading banks under state guarantees.
The Tyligulska windfarm project was developed in accordance with the company’s long-term strategy to achieve carbon neutrality and integration into the single energy market of the European Union, approved by DTEK shareholder Rinat Akhmetov.