Iberdrola cancels sale of Romanian wind projects

ROMANIA: Iberdrola has dropped plans to sell its Romanian wind assets, saying that it has no need to divest further renewable energy assets.

Components ready for installation on the Mihai Viteazu wind farm in Romania
Components ready for installation on the Mihai Viteazu wind farm in Romania

The Spanish energy firm had been attempting to find a buyer for its 80MW Mihai Viteazu wind farm commissioned in 2012 and a majority stake in a 192MW wind project pipeline at various stages of development.

In 2012, Sinovel entered talks with Iberdrola with a view to buying the developer's entire 1.2GW Romanian project pipeline, but this deal fell through, with Iberdrola relisting the assets for sale last year.

Iberdrola denied that a failure to find a buyer for the assets was behind its decision to hold on to the projects, but was unwilling to name any parties that had expressed an interest since the Sinovel deal fell through.

A spokesperson for the company said that it does not believe that it is a good time to sell renewable energy assets and has now brought its programme of divestment to an end.

Last year, Iberdrola sold its operating wind farms in Poland, which amounted to 184MW, and had a policy of shedding renewable assets in "non-core markets".

The decision to hold on to the Romanian projects was also prompted by the securing of a good feed-in tariff for the projects, the company said.

Romania recently cut its renewable energy tariffs in a change of tack for a country that had previously been an enthusiastic wind advocate. However, the cuts were not as severe as had been proposed.

Last year saw Romania add 700MW of wind capacity, below the 923MW added in 2012. This year, only 295MW is predicted to come online, according to the Romanian Wind Energy Association.

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