8 small tips for anyone who wants to invest in Solar Energy in Romania
As the new prices for producing “green” energy have triggered the investors’ interest in this segment, I think that it would be interesting for us to speak a bit about some simple and practical tips that everyone needs to know, before he proceeds in his investment. These tips are addressed to the thousands of interested investors, who are not necessarily “very experienced” in this field. They come from a person who is not the most experienced consultant in the world either, but he is constantly trained by some of his clients, who are major international companies in this field.
If you want to check the new prices for producing solar energy (and the other types of “green” energy) in Romania, please press here.
1. Solar radiation. Ask for real figures
In order for us to verify the solar radiation of a property (the anual average radiation per square meter received by the photovoltaic panels measured in kWh/m2), we use some special maps, approved by European Union (and also used by the banks, before providing you with a loan). There are many guys out there who are giving you very high figures, sometimes higher than the ones in… Greece, some 1.000 km in the South! This is why you should be on the defensive and try to identify the real figures. We measure by MWh (MW hours) per year and a good value is considered to be higher than 1.100 MWh.
2. The right surface
More or less we need 2 – 2,5 hectare (20.000 – 25.000 sq.m.) in order for us to construct a solar park with a capacity of 1 MW. I keep on hearing many different versions of this figure, but this is the range which almost all the experts agree upon. But in order for us to be sure, we should also check the…
3. Soil’s unevenness
The field should be as plane as possible, ideally 100% flat! If it is down – graded, then it should be oriented towards the South and the down – grade should not exceed 30 degrees. Needless to mention that the flat soil provides us with the best results.
4. Clear legal status of the land
There are many investors who develop a project and fail to pass the due – diligence for the legal status of the property where their park is to be developed. Be very careful with the agreement you choose to seal. If you won’t buy the land, make sure that you will lease it for at least 25 years, if possible 49. Why is that? The contract you will sign will be for 20 years and it would be a pity for you to have problems before this period expires.
5. Who defines the size of our project?
Before you buy / concess the land where you want to develop your project, keep in mind that you must get the approval of the local electricity operator (Romania is split in 4 zones and you must address the one who is in charge of yours). Without their prior approval, no project can be developed. Also, only this company can tell you the available capacity in the connection point you want to connect your project to. Don’t be surprised to find out that many transformators are “100% occupied” or “reserved” for “green” energy projects. This company will provide you the accurate feedback for your investment, plus the approximate costs to connect to the network.
6. Access road towards the site
Many people choose the cheapest possible property, but things are more complicated. There are three important parameters that each land has, which determine the final cost of our investment. The first one is the available access road to the site. Ideally we need asphalted roads and a location that is not “in the middle of nowhere”. It is a matter of easy – correct installation of the project, plus security.
7. How do we connect?
What is a perfect land located 15 kilometers away from the connection point? A dead land. Why is that? Because we need to be close to the connection point, securing the minimum possible cost for this operation. If we intend to install capacities bigger than 3 – 4 MW, we measure the proximity to an electric trasnsformator of 110/20/6 kV. For projects with installed capacity of less than 3 MW, we check where we can find an electric grid of 20 kV in order to connect to it. The closer we are, the less we pay. The further we are, the more we pay…
8. Is there a telephone line in the area?
Don’t laugh, you might need to transmit data and find out that there is no telephone line, plus «the mobile phone signal is very weak in the area». This is why you should also verify the existence of this basic infrastructure, in order for your project to be covered by this surprise as well.
PS.1. There are many more things to present or analyze, but we will discuss more in the future.
PS.2. Yes, the above mentioned map is available to you, upon request.
What else would you like to know about «green» energy and solar in particular?