HomeBusinessScatec secures 15-year CfD for 190MW solar energy portfolio in Romania

Scatec secures 15-year CfD for 190MW solar energy portfolio in Romania

Sustainable energy solutions provider Scatec has signed a 15-year contract-for-difference (CfD) agreement with Romanian electricity market operator Opcom.

The CfD will secure pricing for almost 70% of the expected production of Scatec’s 190MW solar portfolio in Romania, while the remaining electricity will be sold on the Romanian wholesale market.

The contracts were awarded during the first CfD auction in Romania, financed by the EU Modernization Fund.

The fund is an initiative of the European Union aimed at helping member states achieve their energy goals.

In this first round, 1.5 GW of solar photovoltaic (PV) and onshore wind energy was allocated in Romania. The remainder of the planned total of 5 GW is expected to be allocated in 2025.

Scatec CEO Terje Pilskog said: “We are very pleased with the award in Romania, which demonstrates our ability to apply our global track record in renewable energy auctions to new markets.

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“Romania has supportive market fundamentals in which Scatec can leverage its competitive strengths to build a position. We look forward to continuing the partnership with Defic Globe, which already has a strong position in the Romanian renewable energy market.”

This is Scatec’s first venture into the Romanian market, where it develops projects in collaboration with local entity Defic Globe.

The solar projects are located in the provinces of Dolj and Olt in the southern region of Romania.

Romania’s position as an attractive market is based on its commitment to the energy transition, together with established mechanisms for Power Purchase Agreements (PPAs) through CfD auctions, corporate PPAs and a developed electricity market.

The estimated capital expenditure for the construction of the solar energy facilities is €140 million ($144.8 million).

The financing will consist of non-recourse financing and contributions from Scatec and its partners, aiming for a leverage of 75%.

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The financial closure of the project and the start of construction are planned for the second half of 2025.

Scatec will retain a 65% ownership stake in the solar power plants and will be responsible for purchasing critical components, which represent a third of total capital expenditure.

Defic Globe Enerji, a subsidiary of Emsolt Investments and YEO Teknoloji Enerji, will own a 35% stake and provide turnkey engineering, procurement and construction services for the project.

Scatec will also provide operation, maintenance and asset management for the portfolio.

“Scatec secures 15-year CfD for 190MW solar portfolio in Romania” was originally created and published by Power Technology, a brand owned by GlobalData.

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