In a significant move towards renewable energy, Complexul Energetic Oltenia (CEO), the Romanian power company, has forged contracts with two fellow Romanian firms, OMV Petrom and Tinmar Energy, to develop eight solar photovoltaic (PV) projects in the country. These projects hold a collective capacity of 735MW, marking a substantial step in Romania's journey towards a greener energy future.
The agreements were announced by CEO on the same day but were separate transactions with each company. The first collaboration with OMV Petrom will result in a 50-50 joint venture to construct and manage four solar plants with a total capacity of 455MW. These plants are anticipated to be operational by 2025. Additionally, CEO mentioned that the partners would invite tenders for the engineering, procurement, and construction (EPC) of the projects, allowing a third party to join the joint venture.
See also: OMV Petrom Expands Renewable Energy Portfolio with Acquisition of Photovoltaic Parks in Romania
To fund these projects, €400 million (US$448.91) will be allocated, with 70% of the funding provided by the EU Modernisation Fund. This fund aims to financially support ten lower-income EU countries, including Romania, in their efforts to decarbonize their energy mix by 2030. The EU Modernisation Fund is backed by cash reserves of €25 billion, generated from the sale of allowances under the EU's Emissions Trading System. The remaining 30% of funding for the OMV Petrom joint venture will be provided by OMV Petrom, which CEO selected as the primary private investor for these projects back in December 2021.
In the second deal with Tinmar Energy, CEO will collaborate on the development and management of four solar projects, combining for 280MW in capacity. These projects will be situated on slag and ash deposits generated by CEO's larger coal-fired power plants, Rovinari and Turceni, located in southwest Romania. Commercial operations for these solar projects are expected to begin next year. As with the previous partnership, CEO and Tinmar Energy will form a 50-50 joint venture to operate these projects, with 70% of the funding coming from the EU Modernisation Fund. This deal also includes plans for a 475MW natural gas plant in Romania.
Though the specific costs of the solar and gas projects were not disclosed, CEO emphasized that the total expenditure for all five facilities would amount to €595 million. This figure surpasses the cost of the solar projects backed by OMV Petrom, underscoring the crucial role financial support mechanisms like the Modernisation Fund play in facilitating countries' energy mix transitions.
The support for Romania's renewable energy sector extends beyond domestic boundaries, with private companies like Spanish solar tracker supplier Soltec contributing to the country's green initiatives. Recently, Soltec shipped its trackers to support a Romanian project operated by Greek renewables developer Myilineos.
See also: Photon Energy Group Completes Two Solar PV Projects on Merchant Basis in Romania
Investments in renewable energy have allowed Romania to rebalance its energy mix, with clean energy capacity steadily increasing as reliance on coal-fired power diminishes. Over the past decade, energy consumption from coal-fired sources decreased significantly from 88.01TWh to 45.84TWh, while solar energy consumption rose from 0.02TWh to 4.62TWh during the same period.
Furthermore, Romanian companies are increasingly showing interest in solar power investments, with fossil fuel-based companies eager to diversify their portfolios. Notably, OMV Petrom purchased a 710MW solar project in June of this year, with commercial operations expected to commence in the second quarter of the following year. Such shifts from traditional oil and gas to solar power are instrumental in transforming Romania's energy landscape towards sustainability and a cleaner future.
