Romania’s Romgaz to buy projects for 180 MW of renewables

Romgaz is considering the acquisition of up to six project firms to achieve its goal of 180 MW in renewable electricity capacity by 2030.

Photovoltaics are the cheapest electricity generation technology, the most available and simplest to install, so even the companies working entirely in the fossil fuel sector have long turned to capturing the benefits of decarbonization. Romania’s state-owned natural gas producer and supplier Romgaz is among the ones catching the solar power wave.

The company is seeking a consultant for the acquisition of up to six project firms (special purpose vehicles – SPVs). The goal is to achieve its target of 180 MW of renewable electricity capacity by 2030.

Romgaz valued the two-year contract at a maximum of EUR 262,000. The contractor would produce a financial and fiscal due diligence report. The purpose is to minimize the acquisition risks.

The other task is a target company evaluation report, the documentation shows. The consultant must take the macroeconomic context as well as legal aspects into account and deliver an economic and financial analysis.

Romgaz leans on photovoltaics for decarbonization

In its ten-year strategy through 2030, Romgaz said it was targeting 180 MW in solar power. It recently sold five-year notes and said the proceeds would partly be used for a low-carbon transition.

The company is already active in electricity production and supply. It operates the old Iernut gas power plant of 200 MW in central Transylvania. A new facility of 430 MW is under construction, but behind schedule, and it will likely be commissioned early next year.

Romania is EU’s biggest natural gas producer

Romgaz is the largest gas producer in Romania. It achieved a net profit of EUR 362 million in the first quarter or 9% more than one year before.

Minister of Energy Sebastian Burduja recently said Romania has become the biggest natural gas producer in the European Union. In the second quarter, it surpassed the Netherlands with 2.3 billion cubic meters versus 2.2 billion, he added.

Romgaz produced 5% more in the first half of the year on an annual basis as it put seven wells into operation, Burduja explained. The Neptun Deep offshore gas field is due to come online in 2027. It is a joint investment with OMV Petrom, with an equal participation.

Notably, OMV Petrom is also investing in decarbonization on a large scale.