The value of investments may reach as much as EUR500 million.
“GE last year decided to buy the stake of a Japanese investment fund that worked with Germany’s Prowind company in the development of several wind projects in the area of Moldavia, Vaslui, with overall installed capacity of 300 MW. There are four wind farms and the two partners’ stakes are approximately equal at the moment,” said Carmen Neagu, regional manager at GE Energy for Romania, Bulgaria and Moldova, without specifying the value of the deal. The farms will have 120 turbines.
This is for the first time in Romania when GE enters the shareholding structure of a company developing a power generation project, after GE has so far stood out as a major provider of equipment for wind farms.
“This is not a first for GE globally. (…) In Romania, we are highly confident the green energy market will also grow outside the established area, Dobrogea. This is why we chose Moldavia,” Neagu explained.
According to Neagu, project development costs will be shared between the two investors. Once the wind farm starts operating, GE will most likely withdraw or keep a small interest, with the company set to continue its core business as equipment provider. Invested money will be recovered at the exit moment. “Another partner may emerge, but we will not be the operator of the farm,” Neagu said.
According to her, “fortunately” the farm has already signed the contract to join the grid operated by Transelectrica, so that it can now start work on the project. “The investment will become operational gradually, starting the second half of 2012 and is set to be completed in the first half of 2013”.
Neagu did not specify the value of the investments in the four wind farms. According to market information, investments in one MW range between EUR1.5 million and EUR1.8 million, so that the total value of the farm GE and Prowind want to build in Vaslui may reach some EUR500 million.
Investments in wind farms can be seen as the hottest business of the moment. Over the past two years alone, the value of funds earmarked for this field has reached EUR1 billion.
For the 2011-2013 period, the Romanian Association for Wind Energy expects total investments of EUR5 billion, with international giants such as CEZ, Enel or Energias de Portugal already involved in very large projects. The frenzy can be accounted for by two aspects: Romania is about to have a lavish mechanism supporting green energy investments through Law 220/2008, and wind in Dobrogea is among the best in Europe.
(English version by Catalina Apostoiu, Editing by Loredana Fratila Cristescu)