10.4 C
Bucharest
October 16, 2021
BUSINESS

Cost of connecting wind turbines to national grid is EUR 500 M

Transelectrica lacks money for the investment.

The connection of wind farms to the national electricity grid requires over EUR 500 M of investment, money Transelectrica does not have, therefore some production capabilities will have to operate with restrictions unless financing sources are identified, Mediafax reports.

‘We are being told we should come up with solutions. Those solutions cost more than EUR 500 M as investment. Transelectrica doesn’t have the funds. We are now discussing with the National Regulatory Agency in the Field of Energy (ANRE) to propose legislative initiatives that would allow us to raise the investment. Without such investment, all wind farm connection permits will be issued with operation restrictions. Currently more projects are being assessed than we can attract, we feel the absence of a legislation to make wind farm developers guarantee their completion’, Transelectrica Deputy General Manager Octavian Lohan told a press conference on energy yesterday. According to Lohan, part of the investment could be provided by selling minority Transelectrica stocks.

‘We have identified sources of financing, now we need the legislation and a hierarchy of projects according to the capacity of accomplishing them. For example, companies from Russia, China, USA or UK have expressed an interest in buying Transelectrica shares. Then we have proposed to ANRE other methods, including financial guarantees wind energy developers should be required to pay when projects are selected,’ Lohan said.  The Government plans to sell by secondary offering 15 per cent of Transelectrica shares together with a 12 per cent injection of capital.

Lohan says that, although Transelectrica has received requests to authorise a total of 30,000 MW wind installations, many developers do not have the money to finalise their projects.  ‘Unfortunately, Transelectrica cannot reject any such project unless it wants to jeopardise the security of the national grid. We cannot have more than 5,000 MW wind energy. Therefore, it seems that we are not doing well,’ Lohan continued.

Competition: energy production sector has been a series of failures

The reorganisation of the energy production sector has been a series of failures in the last years, although formally none of the announced projects has been cancelled, Valentin Mircea, a member of the Competition Council said yesterday.

‘Winston Churchill was saying success is the ability to go from one failure to another with no loss of enthusiasm. It may also apply here. Romania needs a Ministry for Energy to develop clear and consistent policies that should not change with time,’ Mircea said during the Talks about Energy Mediafax conference.

E.ON: Romania needs to regain investor trust

Romania needs to regain the trust of energy sector investors following the unclear situation regarding its gas and electricity regulated prices and projects initially announced and then abandoned by the authorities, said E.ON Romania head Frank Hajdinjak.

‘It will be a difficult thing for Romania to attract investment, but it has to be able to offer trust. Romania ahs lost a lot in the confidence department in the recent years when investments have been announced and then abandoned. Petrom is the only investor that has completed its Brazi thermal power plant. Many steps are needed before confidence is regained. The increase of the price of energy and the law on the support for investment in renewable energies contribute to raising confidence,’ Hajdinjak stated at the Talks about Energy Mediafax conference. He added that, unless authorities clarify legislation and liberalise prices, foreign companies will choose other markets to invest.

Related posts

BCR releases 2020 financial results: Net profit of RON 814.1 million (EUR 168.3 million)

NINE O'CLOCK

Connections : Returns on investments in digitalization, between 300-800%, depending on industry and optimized operations

NINE O'CLOCK

GRAMPET Group – Grup Feroviar Roman accelerates innovation and digitalization projects

NINE O'CLOCK