Finance Secured for Romanian Crucea North Windfarm

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Romania's drive to increase its renewable energy portfolio received a welcome lift this week when final financing was secured for a 108-megawatt (MW) windfarm in the Black Sea region of Dobrogea.

The European Bank for Reconstruction and Development (EBRD) confirmed that it is providing a loan of €49 million ($68 million) towards the construction, commissioning and operation of the Crucea North windfarm. The farm is owned by leading German energy company Steag AG (Essen, Germany) and marks the company's first investment in Romania and its largest wind project to date. The company traditionally operates coal-fired power plants but is trying to add more renewables to its portfolio. The project has also secured €49 million ($68 million)from Erste Group, 90% of which will be covered by the Danish Export Credit Agency (EKF). Banca Comercială Română (BCR) will provide a €27 million ($37.4 million) VAT-funding loan facility.

Crucea North is expected to cost around €200 million ($277 million) and commissioning is expected by mid-2015. When operational the 36-turbine windfarm will generate enough power for approximately 550,000 people and reduce CO2 emissions by 140,000 tons per year. It will use the V112.3.0 MW wind turbines from Vestas Wind Systems (OTC:VWDRY) (Randers, Denmark), which are rated at 3 MW each. For additional information, see December 4, 2013, article - Germany's Steag Building Largest Windfarm.

"The EBRD is pleased to be working alongside STEAG as well as its financial partners, Erste Group, BCR and EKF in supporting this important project," commented James Hyslop, the EBRD's Director for Romania. "Crucea North will promote private investment in Romania's energy sector and help the country meet E.U. green energy targets."

"STEAG is very pleased having achieved signing of the Crucea North transaction which represents the first project of the company in Romania," added Michael Baumgärtner, CFO STEAG GmbH.

Romania is already home to Europe's largest onshore windfarm, the 600 MW Fantanele-Cogealac windfarm, which boasts 240 wind turbines and was connected to the Romanian electricity grid in December 2012. Located in one of Europe's windiest spots in the Romanian province of Dobrogea, it can power approximately one million households. For additional information, see November 26, 2012, article - Romania Celebrates Europe's Largest Onshore Windfarm .

There is a cloud hanging over future wind investment, however, after the government's introduced severe cuts for renewable energy projects in January. For additional information, see January 7, 2014, article - Romania Cuts Support for Green Energy.

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