Ukraine’s largest private vertically integrated energy holding, DTEK, the energy arm of Ukrainian financial and industrial group, System Capital Management SCM; and the China Machinery Engineering Company (CMEC), a unit of China’s state-owned industrial conglomerate, Sinomach, will jointly build a 200 MW solar power plant in the Dnipropetrovsk region, in southeastern Ukraine.

According to DTEK, the solar project, once completed, will be the largest PV plant in Ukraine and among the top three in Europe. Construction on the project is scheduled to start by the end of this month, with completion scheduled by the end of 2018.

The project will be located on the territory of the spent quarry, near Nikopol. The plant is expected to generate more than 280 million kWh annually, and to cover the power consumption of around 100 thousand households, DTEK said in its press release.

“The construction of the Nikopol SES is one of the largest transactions to attract financing to the renewable energy of Ukraine. I am sure that for other investors this will be a positive signal that it is possible and necessary to invest in the Ukrainian “green” generation,” said DTEK’s CEO, Maxim Timchenko.

The solar facility will be granted a tariff of €0.1502 ($0.1863)/kWh, like every project developed under the Ukrainian FIT scheme between 2017 and 2019.

Read more about the Ukranian electricity market design in our recent Opinion & Analysis article, written by Svitlana Teush, counsel at Redcliffe Partners law firm in Kyiv, Ukraine.