Norwegian independent power producer (IPP) Scatec has signed a 15-year Contract for Difference (CfD) in Romania for a solar PV portfolio.
Signed with the electricity market operator, Opcom, the CfD will cover nearly 70% of the production of a 190MW solar PV portfolio. The remaining capacity will be sold in the Romanian wholesale electricity market.
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The contracts were awarded in the country’s first CfD held late last year which saw 432MW of solar PV capacity awarded. The interest in Romania’s CfD auction was so high that it ended up being more than three times oversubscribed with over 1.6GW of solar PV capacity bids.
A second CfD auction is to be held later this year. Solar PV sought for the second auction will be much higher with 2GW. The second CfD auction will be supported by the European Bank for Reconstruction and Development (EBRD) which recently signed a memorandum of understanding with Romania to help the country implement it.
Scatec’s portfolio of solar PV projects is located in the southern counties of Dolj and Olt and will be developed in collaboration with IPP and engineering, procurement, and construction (EPC) contractor Defic Globe.
Financial close and construction of the project is targeted for the second half of 2025. The Norwegian IPP will own 65% of the portfolio, which will have a capital expenditure (capex) of €140 million (US$145 million). The remaining 35% will be owned by Defic Globe
The portfolio of solar PV projects will be financed through non-recourse financing and equity from Scatec and its partners, with a targeted leverage of approximately 75%, said the company.
“We are very pleased with the award in Romania which demonstrates our ability to apply our global track record within renewable energy auctions to new markets. Romania has supportive market fundamentals where Scatec can utilise its competitive strengths to build a position,” said Scatec CEO Terje Pilskog.
Outside of Romania, the company was recently awarded solar PV capacity in a Tunisian tender that was held in December. The first of a series of tenders aimed to add 1.7GW of renewables in the coming years, the tender awarded over 500MW of solar PV capacity.
Solar Media will host its annual Solar Finance & Investment Europe event in London on 4-5 February 2025. This event annually attracts infrastructure funds, institutional investors, asset managers, banks and development platforms at the forefront of European renewables; the vast majority of which are responsible for billions in active and prospective investments in the Europe’s energy transition. For more details, visit the website.
