Danish wind turbine maker Vestas and Ukrainian energy producer DTEK have signed a memorandum of understanding (MOU) to build the second phase of the 384MW Tyligulska wind project in southern Ukraine.

The first phase has 114MW of capacity and was commissioned in May 2023. It was built with an investment of $200m and includes 19 turbines.

The first and second phases of the Tyligulska wind project will have a joint capacity of 500MW. The two phases will be powered by 83 Vestas V162-6.2 MW wind turbines in 6MW operating mode.

These two phases can generate 1.7 terawatt-hours of clean electricity annually for 900,000 homes, avoiding 1.7 million tonnes of carbon dioxide emissions.

The two companies began their cooperation in 2021, when the second phase was announced. The project was put on hold when the Ukraine war broke out.

With the MOU, they reaffirm their commitment to continue with the project and build renewable energy projects in the country. 

DTEK plans to begin construction of the second phase in the second quarter of 2024, with completion scheduled for the end of 2025.

The turbines will be gradually connected to the grid from the end of 2024.

This phase will require an investment of €450m ($486.87m). DTEK will mobilise its own financing with support from leading banks under state guarantees.

The Tyligulska wind project was developed as part of DTEK’s long-term strategy to achieve carbon neutrality and integrate into the single energy market of the EU.

Vestas CEO Henrik Andersen stated: “We are very pleased to be expanding our partnership with DTEK again 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.

“Infrastructure projects of this size in Ukraine currently require additional risk guarantees, and we believe supporting a project as ambitious as this can re-emphasise the EU‘s support to Ukraine. I want to recognise the visionary leadership of DTEK – thank you for the trust you have shown in Vestas.”

DTEK CEO Maxim Timchenko stated: “Today’s memorandum of understanding is a declaration of confidence in DTEK and Ukraine, and a signal that we and our partners will not wait for the end of the war to invest in a greener future. Today, we are busy restoring not only what the occupier is destroying but also building a new energy system.

“The Tyligulska wind farm will significantly increase the stability of our energy system, help strengthen the country’s energy security, and enable Ukraine to become a decarbonisation leader that can act as an energy hub for Europe.”