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07.05.2021

VR Capital’s Elementum Energy achieves commercial operation date for Dnistrovska wind park

Kyiv, 6 May 2021 VR Capital Group is pleased to report the commencement of commercial operations at its 40 MW Dnistrovska wind park (“Dnistrovska WP”).  Having achieved mechanical completion in December 2020, with the installation of 10 x GE 137-4.0 MW wind turbines on 131 meter towers, the power plant has now passed all necessary tests and protocols to enter into production.  The project was realised by VR Capital’s renewable energy subsidiary Elementum Energy together with the American-founded renewable energy developer, Ukraine Power Resources.

Dnistrovska WP sits on a plateau that rises above the Dnistrovska estuary in Ukraine’s Odessa region and benefits from an excellent wind resource.  The project’s wind turbines are the largest capacity machines installed in Ukraine to date.  With an investment of EUR 59 million, the wind farm is one of the largest FDI projects executed in Ukraine in 2020.

During its operating life, Dnistrovska WP is expected to generate 146 GWh of electricity per year and avoid annual carbon dioxide (CO2) emissions of 108,000 tons.

Construction on Dnistrovska WP commenced in February 2020.  Work was carried out in compliance with strict health and safety protocols due to the global pandemic.  Despite the challenging environment, the wind park was constructed in record time frame utilising an innovative multi-contractor approach with overall management undertaken by the project partners allowing for efficient project coordination.

Elementum Energy and Ukraine Power Resources are currently in the process of constructing a second, 60 MW phase of Dnistrovska WP which is anticipated to be commissioned in Q1 of 2022. 

Richard Deitz, President of VR Capital Group Ltd. (“VR Capital”) and Chairman of Elementum Energy’s Board of Directors, commented: “We are excited to welcome the first wind park to Elementum Energy’s portfolio of renewable energy assets in Ukraine and look forward to the implementation of the second 60 MW phase of the project. It is a tribute to the professionalism of our employees and partners that, in the midst of the global pandemic, we managed to complete Dnistrovska WP on time and on budget.  We are thankful to everyone that helped us achieve this milestone.  Despite the ongoing challenges in the renewable energy industry in Ukraine, we believe that these growing pains will be successfully managed.  Green energy is destined to play a growing role in the Ukrainian energy sector.  Ukraine has a tremendous opportunity in the medium term to transform its role in Europe’s energy value chain in line with the European “Green Deal” principles, and we are committed to supporting this future as a leading foreign investor in the country.”

Peter A. Gish, Founder and CEO of Ukraine Power Resources, added: “It was a privilege to develop and build the Dnistrovska wind project.  VR Capital and Elementum Energy were great partners in a challenging environment.  GE’s construction teams worked seamlessly and tirelessly to meet our year-end deadlines, and the local and regional stakeholders were extraordinarily supportive and helpful.  We are particularly proud of the fact that we had no injuries or accidents notwithstanding an accelerated construction schedule.  Ukraine has an extraordinary land resource which is compatible with large scale renewable energy.  We look forward to building our next wind project and helping Ukraine in the battle against Climate Change.”

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VR Capital is an international asset management firm serving an institutional investor client base with approximately $5 billion in investor assets under management.  VR Capital is one of the largest and most experienced western investors in Ukraine with a track record of investing in the country dating back to 1999.  The firm operates via its principal offices in New York and London and serves a client base of leading western institutional investors.

Elementum Energy Ltd. (“Elementum”) is a UK based independent power producer focused on development and operation of renewable energy assets in Central and Eastern Europe.  Elementum is a subsidiary of VR Global Partners, L.P. (“VRGP”), a $4.5 billion global investment fund that is VR Capital’s flagship investment vehicle.

Ukraine Power Resources, based in the United States, is the latest in a series of renewable energy companies founded or co-founded by Peter A. Gish, which have successfully developed over 2.4 GWs of wind power capacity in seven countries. UPR is an affiliate of First Summit Energy, which Mr. Gish founded in 2017 to develop renewable energy projects in emerging markets with positive growth dynamics.