The funding comes from Austria’s Kommunalkredit, a financial institution focused on infrastructure, the company said in a release. What is interesting is that this loan is based on a merchant power pricing contract, a first for the Romanian market. Such an agreement is quite similar to a long-term power purchasing agreement (PPA), except that in this case the power price is given by the market price, which can vary over the life of the project depending on the conditions at the time.
“Producing green energy to help Romania on the path to energy transition is a goal of DTEK Renewables International,” said John Stuart, CEO of DTEK Renewables International.
According to information published by DTEK Renewables International, the plans are to reach a capacity of 750MW in green energy projects in Romania.
Austria’s Kommunalkredit says it seeks to develop a 5GW (5,000MW) portfolio of green energy projects in Italy, Poland, Romania and Croatia.
(English version by Loredana Fratila-Cristescu)