Summary sheet
This operation consists of a co-investment alongside the Copenhagen Infrastructure Growth Markets Fund II for the construction and operation of new 396 MW onshore wind farm in Romania.
The wind farm will contribute to achieve the 2030 decarbonisation targets set out in the National Energy and Climate Plan (NECP). Being located in a Cohesion priority region, the project is eligible under Article 309 (a) "projects for developing less-developed regions" and (c) "common interest".
The implementation of the project increases renewable energy generation capacity in Romania and contributes to the 2030 targets set out in the National Energy and Climate Plan and the REPowerEU Action Plan.
The financing of this project also contributes to the Bank's lending priority objectives on Renewable Energy as well as on Climate Action, as well as Social and Economic Cohesion. As the project will produce electricity from low carbon sources, it will address the market failure of negative climate and environmental externalities, through the reduction of carbon emissions and air pollution (compared to fossil-fuel generation).
The project's revenues will be supported through the new Contract for Difference support scheme.
In terms of project results, the project is expected to have a positive economic rate of return, considering the economic value of the electricity generated. Therefore, the project is expected to generate a positive broader social benefit by generating clean and renewable power at a cost reasonably below the cost of alternatives in Romania. On project quality, the project is supported by good capabilities / governance of the promoter.
EIB involvement in the Project helps the Fund to continue building a diversified portfolio and allows them to tackle a sizeable project relatively early in their fundraising period. EIB investment in a project intending to participate in Romania's new renewable energy support scheme can have a positive signalling effect, mobilising further investments from other investors.
Wind farms fall under Annex II of the Environmental Impact Assessment (EIA) Directive (2011/92/EU), requiring the competent authorities to determine whether an EIA process is required. In compliance with specific EU legislation that has been transposed into the national legislation, the project underwent a screening process and according to the environmental framing stage decision, covering the construction and connection to the grid, the project is not subject to an environmental impact assessment and does not require going through the other stages of the environmental adequate assessment procedure; therefore EIA, Appropriate Assessment and Water Framework Assessment do not need to be carried out. The Project Pestera II is expected to be built in a dedicated renewable energy area, according to local urban and spatial plans for which a Strategic Environmental Assessment has been carried out.
The EIB requires the Fund to ensure that implementation of the construction projects will be done in accordance with the EIB's Guide to Procurement.