The decision of Selgros comes at a time when many say solar power is the next renewable energy boom and investments in wind farms have already attracted EUR2 billion.
The latest data from national grid company Transelectrica published early last week show that Selgros has already signed the grid connection contract for a solar farm of about 1 MW in Pantelimon district in eastern Bucharest, which should go online in mid November. Such a contract means the project has progressed quite a lot towards completion.
“This is the first such investment and more will follow. Photovoltaic panels are in place on the roof of our store in Pantelimon. We believe that by investing in green power we can accomplish two things: make our contribution to a less polluted environment and also partly offset the effects of the utility price hike,” says Alexandru Vlad, chief executive of Selgros Cash&Carry Romania.
“This is only the first investment, more will follow, and always on the rooftop of Selgros stores. The south of the country is suitable for this kind of investments; we are also looking into installing such photovoltaic farms in other locations in the northern half of the country.”
The Selgros official did not say how much the investment might be worth, but according to the available information, each megawatt in a solar farm requires about EUR2 million. The equipment price is dwindling, though.
What truly motivates investors to spend money on solar power generation is the very generous support scheme put in place by the Romanian government. Solar power gets the most of it, six green certificates per megawatt generated, each of which priced at about 247 lei (EUR55.3), according to OPCOM energy exchange.
Producers are free to sell the power they do not use themselves on the free market and get the market price for it on top of the six green certificates. The Romanian government devised the scheme to comply with European regulations that require green power to account for a specific share of the power basket by 2020. The scheme was needed to attract investors because renewable energy projects cost more to implement than conventional ones.
Selgros, which posted almost EUR780 million revenue last year, is not the only major company to announce plans for solar power generation. IKEA, too, expressed similar interest. (EUR1=RON4.4667)
(English version by Loredana Fratila-Cristescu)