Photo: Pvproductions on Freepik
Kommunalkredit Austria approved EUR 28 million in financing for Econergy Renewable Energy’s Iancu Jianu photovoltaic project of 58 MW in south Romania. It operates two solar power plants in the country, of 247 MW in total, while 256 MW is under construction. The Israeli company has also just raised EUR 87 million through a bond issuance.
Econergy Renewable Energy said its subsidiary Econergy UK has signed a financing agreement for EUR 28 million in project funding for the Iancu Jianu solar power project in Romania. It expects to connect the facility in Olt county in the country’s south next year.
The project is for 58 MW in peak capacity. The Israel-based company obtained the loan from Kommunalkredit Austria, which specializes in infrastructure and renewables. Econergy earmarked EUR 26 million from the proceeds for construction costs and repayment of loans, while the rest is for value-added tax. Iancu Jianu is valued at EUR 33.4 million.
The firm said it would refinance the short-term loan with a long-term one.
It already operates Romania’s biggest PV plant, Rătești, in an equal partnership with Nofar Energy. They inaugurated the facility with 154.7 MW in peak capacity last year. Notably, there are several bigger projects in the country, which is experiencing a solar power boom.
Solar park Scurtu Mare to be connected to grid by year-end
Econergy’s other operational asset in Romania, within a 50:50 joint venture with RGreen Invest, is in Părău near Brașov. The peak capacity is 92 MW.
The company is building four more photovoltaic units in in the country: Oradea, Scurtu Mare, Bobicești and Melinești, all in 51% ownership. The combined capacity including Iancu Jianu, which is its independent project, is 256 MW. Phoenix is the minority partner in the Scurtu Mare endeavor, with 55 MW in peak capacity scheduled to come online by the end of the month, and Oradea (87 MW).
Econergy developing or operating 2.1 GW in total in Romania
The Romanian portfolio includes 20 photovoltaic projects and two wind projects, with a total of 2.1 GW in development and operation, Econergy’s Director of Project Finance Javier Flamarique told Balkan Green Energy News.
Flamarique: Econergy aims to sign power purchase agreements for all its projects
“We aim to sign PPAs for all our projects, as securing long-term agreements is a key component of our strategy to ensure stable revenue streams and enhance project bankability,” he revealed. The new financing deal underscores the company’s strategic focus on advancing sustainable energy projects across Europe, Flamarique added.
Earlier this year, Enspire Enerji took over a 214 MW solar power project in Romania from Econergy. The investment branch of Turkey-based Entek Elektrik paid EUR 32.9 million.
Econergy also operates in the United Kingdom, Spain, Italy, Poland and Greece. The portfolio includes projects for battery energy storage systems.
Company sells six-year debt securities to fund its European projects
The company has just raised ILS 329 million (EUR 87 million) in Israel through a bond issuance. Demand exceeded the sum by 33%. The interest rate for the debt with a six-year maturity is 6.95%. It translates to an effective yield of 7.2%, Econergy said.
The proceeds are for supporting 1.5 GW of projects in commercial operation and under construction across key European markets, the statement reads.
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