The Danish SDG Investment Fund, which invests venture capital for sustainable projects on behalf of several of Denmark’s biggest pension funds, has invested in building sustainable solar power plants in Ukraine.

The fund, a public-private partnership between the Danish state, private investors such as pension funds PKA, PensionDanmark, PFA, ATP, JØP/DIP, Pensam and SEB Life & Pension, and the Investment Fund for Developing Countries, has made its first investment in a 19.1 megawatt Ukrainian solar park developed by the Danish company Better Energy.

The Danish SDG Investment Fund has committed DKK 37 million, representing close to one third of the total expected investment. The fund aims to invest in projects which help realise the UN’s 17 Sustainable Development Goals (SDGs) and the 2030 Agenda for Sustainable Development.

The fund and Better Energy decided on the investment as Ukraine has developed a strategy to increase domestic production of energy, and grow renewable source to 25 per cent of the total supply by 2035.

The Ganska park is located in the Zythomir region, central Ukraine. When connected to the national grid, the 59,000 solar modules at Ganska will produce renewable energy equivalent to the consumption of close to 6,500 households and will reduce CO2 emissions by 8,000 tons annually.

Repayment of the investment will be based on a Power Purchase Agreement (PPA) with the Ukrainian authorities.

Danish Minister for Development Cooperation Ulla Tørnæs said in a statement: “We need to work in partnership with the private sector to deliver on the 2030 Agenda. Acceleration towards the SDGs requires a new approach.

“The Danish SDG Investment Fund was highlighted at the international P4G summit in Copenhagen in October as a leading example of a public-private partnership for targeted investment in the SDGs. This project in Ukraine is a good illustration of how it works.”

JØP and DIP CIO Mikkel Svenstrup said: “At JØP/DIP, we are happy that our investment in Danish SDG Investment Fund can contribute to creating more sustainable energy in the future. We increasingly experience that our members is aware of the opportunities around sustainable investments, and the solar power plant in Ukraine is a very tangible example of how we can make a difference through our investments.”

The SDG fund expects returns of around 10 to 12 per cent annually.

The Danish SDG Investment Fund has also announced that it together with IFC and FMO are investing DKK 224m in Africa’s leading blueberry producer Mbiza, enabling the company to expand its production sites by additional 180 hectare and upgrade packing house infrastructure. The expansion will create between 200 and 250 new permanent jobs.

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