BUCHAREST, March 4 German power firm STEAG GmbH
will receive funding for a 200 million euro ($275.47 million),
108 megawatt wind energy park in southeastern Romania, the
European Bank for Reconstruction and Development (EBRD) said on
The European Union state has lured scores of foreign
renewable energy developers to its shores with steady wind, a
potentially lucrative market of 20 million people and a once
generous support scheme.
The incentives give developers green certificates for each
megawatt generated and force power suppliers and large users to
buy them based on an annual quota set by the energy regulator.
Green energy investors gain once by selling certificates and
again when they sell their electricity.
"Preliminary construction works on the 36-turbine wind park
began late last year and are to be finalised by mid-2015," the
EBRD said in a statement.
"Once operational, the project will trade both electricity
and green certificates on the wholesale electricity trading
platform, OPCOM, increasing the depth and liquidity of the
Romanian energy market," the EBRD added.
The project cost is roughly 200 million euros, and is
expected to cut carbon dioxide emissions by 140,000 tons a year.
The bank will give STEAG a 49 million euro loan for the
project, with funds also expected from Austria's Erste Bank
and its Romanian unit BCR.
Romania's renewable energy support scheme, which has been in
place since 2012, was once deemed too generous by the European
Commission. It brought droves of foreign investors to Romania,
particularly to wind energy, including Czech CEZ.
Private investors have installed 2,599 megawatts worth of
wind energy in Romania in the last four years, more than its two
But last year the leftist government of Prime Minister
Victor Ponta decided to hold off paying some of the subsidies
for several years and in January it decided to cut the number of
green certificates for new projects.
The idea behind the move was to avoid overcompensating
producers and curb price increases for industry and
($1 = 0.7260 euros)
(Reporting by Luiza Ilie; Editing by Matthias Williams and Mike