NBT is a Norwegian company that develops, owns, and operates large-scale wind projects in markets that has the ambition to increase the share of renewables and reach CO2 emission targets. With over 1,000 MW developed and a strategical target of reaching 2 GW in construction or operation by 2025, we want to become a renewable powerhouse with a special focus on southeastern Europe.
NBT works closely with leading international financiers, such as the European Bank for Reconstruction and Development and other international development banks. In 2019, we were awarded the “Sustainable Energy Bronze Award” by the EBRD — an important recognition for NBT. The company prefers to work with financing partners that understand the complexity of constructing large-scale wind projects in challenging markets. “The fact that NBT is working with most of the European development banks proves that we comply with the highest international standards on environment, social responsibility and corporate governance. We represent an attractive and meaningful vehicle for channeling funds to develop clean and renewable energy projects of the future,” says Joar Viken, the founder of NBT.
Kherson Oblast
A good example of a project developed by NBT is Syvash — a 246 MW wind farm located in Kherson Oblast.
NBT started the development of the project to international standards in 2017 and successfully secured debt of 262 million euros from eight development banks and funds (EBRD, Proparco, Green for Growth Fund, Finnfund, Black Sea Trade and Development Bank, IFU, FMO and NEFCO). The project is constructed and operated together with Total Eren, a subsidiary of the French oil major Total. The total investment in the wind farm is 376 million euros. A large number of lenders was necessary due to challenges of attracting debt finance into Ukraine. For this achievement, NBT was awarded the “Wind Developer of the Year” (2019) by #FinanceWind Europe. This project will generate enough electricity to supply 250,000 households and includes construction of the largest private substation in Ukraine.
“Syvash is a landmark project for Ukraine. It is one of the biggest wind farm built in Ukraine and for NBT it has represented a great platform to secure more foreign investments into the country. We represent exactly what Ukraine and President Volodymyr Zelensky is looking for — an international company, with solid track record, that can bring more foreign direct investments into Ukraine and help drive the energy transition in the most efficient way,” Viken says.
Zaporizhia Oblast
This summer NBT will start construction of the first part of the Zophia wind project in Zaporizhia Oblast. We plan to erect 75 wind turbines with 338 MW of capacity. The project also includes the construction of a large substation and associated grid expansion, which will benefit the national transmission system.
If successful with this second project, NBT will become the largest Norwegian investor in Ukraine, attracting close to 1 billion euros in foreign direct investment. As the European Union is pushing for an emission free future by 2050, wind farms play a core role with over 600 GW of new wind power capacity expected. By using the experience and knowledge of existing wind developers in Ukraine, of which around 50% are internationals, Ukraine can contribute to creating a sustainable future line with international and European objectives and commitments.
Ukraine benefits from our wind farms in many ways. By replacing thermal power production, we reduce air pollution, which is a major problem for Ukraine. Our wind farms will reduce carbon emissions by approximately 1.6 million tons of CO2 annually. We will build new grid infrastructure and we will invest in the local communities through targeted investments in social infrastructure and community projects. We will create jobs locally both during construction and in operation both through direct employment of local employees and through the use of local subcontractors. Since sustainability is the core of the NBT business model, we adhere to the highest standards and create significant benefits for the regional development of Ukraine. NBT believes that a natural part of the development of a new wind farm includes significant support for projects in the local communities through various programs focused on education, medical services, environmental issues, infrastructure, sport, culture and gender equality.
Cheapest renewable
Since the wind blows more than the sun shines in Ukraine, wind farms are the cheapest renewable energy source, and significantly cheaper than any new conventional power plants such as nuclear, coal or gas-fired power plants.
It has a much lower feed-in tariff than solar power plants and after the expiration of the fixed tariff in 2029, our wind projects will continue to produce clean and renewable electricity for decades, facilitating competition and reduction of electricity prices for Ukrainian consumers.
Active since 2013
Due to the high penetration of international investors in the wind sector in Ukraine, this sector also represents key reference points for the Ukrainian government to attract investments to rebuilding aging electricity infrastructure. Every project that is successfully financed and implemented in Ukraine will create trust from international investors, leading to reduced country risks and cost of capital. This is the main reason why the Ukrainian government should comply with its obligations toward renewable energy investors. This will allow this group of investors to continue to build trust and confidence from investors in other sectors of the economy.
NBT has been active in Ukraine since 2013 and we are proud to call ourselves a great “ambassador of Ukraine”. We want to help drive the renewable energy revolution in Ukraine, creating economic growth and a more sustainable future for all.
Magnus Johansen is vice president for business development at NBT. He has broad experience working with emerging markets. While living in Ukraine, he has focused on government relations. He is a strong advocate for the renewable industry in the country. Ingrid Sara Grimstad Amundsgård is head of communications and public relations with NBT. She has extensive experience working with international business development, communications and sustainability issues with a special focus on corporate social responsibility.
