EIB funds Enel projects in Romania

ROMANIA: The European Investment Bank (EIB) has agreed a EUR 200 million loan to finance Enel Green Power's wind projects in Romania.

Enel operates the 34MW Agighiol wind farm in Romania

The money will be used to partially fund the construction of a number of unnamed wind farms in the Banat and Dobrogea regions of Romania.

The 15-year loan will not have to start being paid back for two and a half years. Enel described the finance conditions as "competitive with the market benchmark".

The Italian developer has a portfolio of seven wind farms in Romania with a combined capacity of 434MW, mostly in the Dobrogea region in the east of the country.

This latest loan follows on from two previous cash injections by the EIB worth a total of EUR 600 million to help Enel develop wind projects in Italy between 2010 and 2012.

Further to this, in 2011 Danish export credit agency EKF provided EUR 112 million in financing to help cover investments for Romanian wind-power projects with a combined capacity of 118MW.

The EIB said that it decided to agree to the financing because the projects met one of its central aims of supporting projects in the energy sector that stimulate increased generation from renewables.

However, the Romanian government has taken an incresingly hostile stance towards wind power over the past year.

At the beginning of 2013, it was estimated that more than 900MW of new wind capacity could come online this year, bringing the country's total capacity to more than 2.8GW. However, as the year has gone on this forecast has steadily fallen.

In September, a draft policy was in place to reduce the number of green certificates issued for wind farms in the period up to 2017 to 1.5 per megawatt hour of production from two certificates at present.