This investment comes with the backing of the European Union's InvestEU guarantee, marking a significant step in supporting Romania's ambitious green energy goals.
Key Details of the Financing Package
The financing will be divided equally between the EBRD and Raiffeisen Bank, with each contributing €55 million. The funds will be allocated in two tranches: €25 million and €30 million. This structured financing approach is designed to mitigate risks and encourage further investment in Romania’s renewable sector.
The two solar plants, located in Iepuresti and Ghimpati, will have a combined installed capacity of approximately 300 megawatts (MW) and are expected to generate around 386 gigawatt-hours (GWh) of renewable electricity annually. This output will significantly contribute to Romania's energy supply while avoiding approximately 160,000 tonnes of carbon dioxide emissions each year.
Supporting Romania’s Renewable Energy Ambitions
Grzegorz Zielinski, EBRD Head of Energy Europe, emphasized the importance of this project, stating, “We are excited to support Nofar Energy’s renewable energy investments in Romania... These solar power plants will increase Romania’s renewable capacity, supporting the country’s ambition to add 11.9 GW of new renewable capacity by 2030.” This aligns with Romania’s commitment to increase the share of renewables in its total energy consumption from 24.3% in 2019 to 36.2% by 2030, as part of the EU’s Fit for 55 and REPowerEU initiatives.
The solar projects are being developed by RTG Solar Energy and Solis Imperium, both Romanian companies ultimately owned by Israeli firm OY Nofar Energy. This international partnership underscores the growing confidence in Romania’s renewable market, especially following recent regulatory changes that support green energy investments.
Broader Implications for Romania’s Energy Landscape
The €110 million finance package is a crucial element in Romania’s strategy to enhance its energy security, particularly in the context of geopolitical tensions in Eastern Europe. Following a decade of limited investments in renewable energy, this initiative signals a renewed momentum in the sector, which is essential for reducing dependence on fossil fuels and mitigating climate change.
The EBRD has been a longstanding supporter of Romania's green transition, having invested nearly €11 billion in 524 projects across the country to date. This latest investment not only aims to improve environmental outcomes but also to safeguard Romania's energy future.
Opportunities for the Rural Sector
The development of these solar plants presents significant opportunities for Romania's rural areas:
- Job Creation: The construction and operation of solar plants will create jobs in local communities, boosting the economy and providing new employment opportunities.
- Energy Independence: By generating renewable energy locally, rural areas can reduce their reliance on imported fossil fuels, enhancing energy independence and security.
- Sustainable Development: The focus on renewable energy aligns with sustainable development goals, promoting environmentally friendly practices in rural economies.
In conclusion, the €110 million finance package represents a pivotal investment in Romania’s green ambitions, particularly in renewable energy. By leveraging this funding effectively, Romania can not only achieve its climate targets but also foster economic growth, energy security, and sustainability in its rural sectors.
