By Vanora Bennett
Highlights
- EBRD lends 32 million for 192 MW onshore wind farm in Romania
- First stage of Vifor wind project will generate over 550 GWh of renewable energy a year
- EBRD is a leader in green finance, strongly supports Romania's renewables ambition
The European Bank for Reconstruction and Development (EBRD) is lending 32 million, as part of a 291 million financing package, to build and operate a 192 MW onshore wind farm in Romania, the first phase of a large wind farm with total capacity of 461 MW to be built in Buzau region in the southeast of the country (the "Project"). The remainder of the financing for Vifor wind farm will come from other financial institutions.
The wind farm will be owned by First Look Solutions S.A., a Romanian special purpose vehicle jointly owned by Prague-based Rezolv Energy SA and London-based Low Carbon, both investment companies with extensive experience in complex sustainable infrastructure assets worldwide. The Project is expected to begin operating commercially by the end of 2025. Once commissioned, the first phase of Vifor wind farm will be able to supply clean electricity to approximately 108,000 households in Romania.
Given its size, the Project is a landmark milestone of the country's ambitious energy transition story, as Romania seeks to increase the share of renewables in its energy mix, as well as securing the country's energy sources on the tailwinds of Russia's war on Ukraine.
Romania is expanding its renewable energy goals in line with EU initiatives like Fit for 55 and REPowerEU. By 2030, the country aims to boost the share of renewables in its total energy consumption from 24.3% in 2019 to 36.2%. This involves adding 11.9 GW of new renewable capacity, reflecting the country's growing commitment to increasing renewable energy production.
EBRD's Grzegorz Zielinski, Head of Energy Europe, said: "We are pleased to support Rezolv Energy and Low Carbon on this landmark Project. The Project is expected to benefit from an unprecedented three power purchase agreements, and given the size, it will play an important part in boosting Romania's renewables pathway to 2030."
Rezolv Energy's Jan Viton, Financing and M&A Director, said: "This is a truly landmark project and the first one Rezolv Energy brings to financial close. We are very proud at the interest this financing has generated amongst a wide spectrum of financial institutions, and we are delighted with the cooperation and relationship we have developed with EBRD in bringing this financing to such a successful close."
Martin Langham, Managing Director at Low Carbon said: "We are delighted to be partnering with EBRD on VIFOR, who will play a crucial role in its establishment by helping to unlock capital to finance the project. Once built, VIFOR will be one of the largest wind projects in Eastern Europe and reinforces our track record of working with institutional investors to deliver large-scale renewable infrastructure, while playing a key role supporting Romania's efforts to decarbonise its electricity grid."
The EBRD, a leader in climate finance, has to date invested almost 11 billion in 525 projects in Romania.
