Romanian Wind Energy Forum 2012: 7 + 1 important statements for the ones who did not attend
One of the most important annual events in the Romanian Renewable Energy sector was held in Constanta 2 weeks ago. I’m talking about “Romanian Wind Energy Forum”, organized by RWEA (Romanian Wind Energy Association). More than 100 important market players attended this 3 day event, between them also my colleague Ruxandra Ilie (I was on another… mission, in Rome, representing Romania there together with the Italian – Romanian Chamber of Commerce, during the “Zero Emission” Fair).
Today I would like to share with you 7+1 of the most important statements that Ruxandra chose. This way, the ones who did not attend will be informed, and the rest will have a better informed opinion about what is going on in the Romanian Renewable Energy world.
1. ANRE: “1.600 MW of Wind Energy installed in Romania, 14.000 MW with Grid Connection Contracts”
The representative of ANRE provided the latest updates of the Wind Energy sector in Romania. So according to him there are wind projects of:
-14.000 MW with Grid Connection Contracts;
– 2.000 MW with Establishment permits;
– 1.600 MW which have already been installed.
So 1.600 MW are already commissioned, plus another 2.000 MW are ready, waiting for the financing or investor (or both) in order to be constructed and double the country’s capacity. The market continues evolving…
2. ANRE: “5 MW of Solar Energy installed in Romania, 1.500 MW with ATR”
Apart from the Wind market, the representative of ANRE also presented the current status of the Solar Energy sector. So according to him there are solar projects of:
– 1.500 MW with ATR (the document that establishes the connection terms);
– 5 MW which have already been installed;
– 1,7 MW which is in the testing phase;
The market is still in the beginning, but the number of MW with ATR has almost doubled this year. This is a sign of the potential of the sector, which seems to be the next one to explode after wind.
(I was happy to realize that I know all these 5 + 1,7 MW projects!)
3. The Competition Council of the European Commission: “We assume that by the end of 2012, we will have the final decision for the wind projects with installed capacity of over 125 MW”
There are many big projects on the market which are awaiting this decision. So… patience for a few more months, please!
4. BCR: “We have already financed wind and micro hydro projects of 120 MW and now we are looking into solar sector as well”
This was the main announcement, but besides that they informed the audience that they are waiting for the secondary legislation and the issue related to the PPA contracts. (PPA = Power Purchase Agreements, the most important element for an investor who wants to secure his revenues in the long term).
5. CEZ: “We will remain brokers of green certificates and not buyers”
One of the most important and influential players in the Romanian Energy world is definitely Mr. Ion Lungu from CEZ Trade. This is why his statement above has great impact on the market. If CEZ has chosen to remain a broker and not an off taker, this means that there will be fewer options for investors wanting to sign strong contracts with bankable international utility companies and traders.
6. CEZ: “When investing, you should mitigate these 3 risks”
CEZ has huge experience in the Renewable Energy market of Romania. This is why when a representative of theirs described the 3 risks that an investor should mitigate, everyone paid close attention.
“So an investor should be sure that he will mitigate these 3 risks:
· Green Certificates’ market risk
· Power market’ risks
· Balancing market’ risks
(I keep on saying this to all investors as well, Romania does not have a Feed in Tariff and an easy system to deal with. These parameters should be taken care of with attention).
7. “Where are the investors?”
This question was asked in the room several times, due to the fact that there are too many discussions about projects but only a small part of them advance to pre-contracts or final investment.
This is due to the fact that Wind Energy is not a “game for everyone”, especially in Romania. There is a limited number of companies which have the know-how, financing and team of experts that can really pursue a project and transform a land with approvals into a land with turbines producing energy.
7 + 1. Investor: “The 4 most important criteria for choosing a wind project and invest in it”
One of the biggest companies in Romania nowadays described their investment strategy, as they are still interested in buying projects. According to them, a wind energy project should have the following characteristics to be eligible for them:
· It shouldn’t be huge;
· Wind measurements that prove its excellent wind potential;
· Easily accessible location;
· Clear ownership status of the land
The representative mentioned many more, but these are the 4 most important criteria according to him.
(Don’t expect me to tell you his name, you should have been there if you want to find potential clients).
Overall: If we draw up a summary of all the discussions during these 3 days, the result is the following:
“Wind Energy will continue expanding in Romania, probably not at the pace of the past but there is still appetite for investments. The ball is in the hands of the Romanian State that needs to decide whether it will make this investment procedure simple (and attract billions of Euro in the Romanian economy as Foreign Direct Investments) or will make it difficult and see only a small part of the projects realized”.
PS: Ruxandra, thank you for the good work.
What is your opinion?