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Ukraine is negotiating with one of France's largest energy companies Engie SA about building a giant solar park worth US$1.25 billion in the uninhabited radioactive zone surrounding the abandoned Chornobyl nuclear reactor, according to Ukrainian weekly news magazine Korrespondent with reference to Bloomberg.
The French company is beginning a pre-feasibility study now, Korrespondent reports.
"France's experience in nuclear is one of the reasons that we wanted to work with them," Ukraine's Minister of Ecology and Natural Resources Ostap Semerak said.
Read alsoThree solar power plants to be built in Odesa region within yearHe also noted that the company approached the Ukrainian government after it announced the intention to develop renewables in Chornobyl.
Engie SA confirmed it is in discussions with the Ukrainian government but declined to comment on the project size. According to Semerak, about 60 companies are interested in the implementation of the projects in the exclusion zone.
The publication notes that the highest Ukraine's tariff for clean power is 15 euro cents per 1 kWh, while the cost of solar energy in most countries on the continent does not exceed 8.6 euro cents per 1 kWh.
"That's a generous remuneration rate, but perhaps not so much if you take into account the risk profile of the country," said Pietro Radoia, solar analyst at BNEF. "Ukraine has good solar irradiation, but a low level of confidence from investors and the consequent prohibitive cost of financing."