Chinese companies are interested in solar energy development in Chernobyl

Doing business in Ukraine: Chinese companies to invest in solar energy in Chernobyl

This article discusses interest of #Chinese companies in the plans of #Ukrainian #government to #construct a #solar plant in the #Chernobyl #exclusion zone.

Visit our website if you are interested in the #Ukrainian_economy or #doing_business in Ukraine.

As was previously reported, the Ministry of Ecology and Natural Resources of Ukraine announced plans of construction of solar power stations in the Chernobyl exclusion zone. According to the Ministry, the project will be constructed on a land plot of six thousand hectares, which potentially may result in generation of electricity equal to the amount generated by the Chernobyl Nuclear Power Plant.

Recently the Minister of Ecology and Natural Resources of Ukraine stated that two Chinese companies, namely China Civil Engineering Construction Corporation (CCECC) and Golden Concord Holdings Limited (GCL), are ready to invest USD 1 billion in development of the project. If such investment happens, this will trigger financial support from the European Bank for Reconstruction and Development, which preliminary agreed, according to the Ministry of Ecology and Natural Resources of Ukraine, to take part in financing the project provided that the Government secures necessary financial support in the amount of USD 1 billion for the initial stage of construction.

As pointed out by the Ministry of Ecology and Natural Resources of Ukraine, low price of land in the Chernobyl exclusion zone and availability of qualified personnel are the most attractive factors for investors for implementation of the project. In addition, the level of radiation has significantly lowered down within the last 30 years. If negotiations with foreign investors are successful, implementation of such ambitious project may commence in 2017.

We note that as of 1 July 2016 the overall power capacity of Ukrainian alternative energy sector reached 1028 MW. In particular, the power generation capacity of solar power stations in Ukraine amounts to 453 MW, wind power stations – 426 MW, biomass plants – 31 MW and small hydro power stations – 118 MW.

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