Electrica to issue green bonds, start building two large PV plants

Electrica’s shareholders approved the proposal to raise up to EUR 500 million through green bonds, obtain a EUR 623 million loan and start the construction of two solar power plants with 140 MW in combined peak capacity. The Bihor 1 project includes an energy storage system.

Electricity supplier and distributor Electrica, in which the Romanian Government controls a stake of just under 50%, held an extraordinary general meeting of shareholders. The management said the decisions support its strategy for the energy transition, sustainable development and financial growth.

The company said it would issue green bonds worth up to EUR 500 million to support sustainable and green energy projects. Shareholders also voted to obtain a syndicated credit facility of EUR 623 million to refinance debt and invest strategic investments.

In addition, Electrica is moving forward with its two major renewable energy projects. The assembly gave the green light for the Satu Mare 3 photovoltaic project of 62.5 MW in peak capacity, worth up to EUR 38 million excluding value-added tax, Economica.net reported.

The other one is for solar power plant Bihor 1 of 77.4 MW in peak capacity including energy storage. The company earmarked up to EUR 49.5 million excluding VAT.

The investments include the construction of substations for both facilities and fences and the connection to the transmission network.

“Today we took important steps in strengthening the company’s financial and strategic positions by approving some essential measures for our future. Green bond issuance and access to the credit facility are instruments that support our sustainable development and energy transition goals. In addition, the approval of the investment in the two photovoltaic parks reinforces our desire to become a benchmark player in renewable energy production, thus contributing to energy security and environmental protection. These decisions reflect shareholder confidence in the company’s strategic direction and our commitment to generating long-term value,” said Electrica’s Chief Executive Officer Alexandru Chiriță.

Electrica purchased both PV projects from Monsson’s Emanuel Muntmark

Electrica completed the acquisition New Trend Energy in July. The project firm brought the Satu Mare 3 photovoltaic project to a ready-to-build phase. The site is on the territory of the Doba commune in Satu Mare county, in northwest Romania.

Electrica earmarked up to EUR 49.5 million for Bihor 1 and up to EUR 38 million for Satu Mare 3

The electricity distribution and supply utility bought the special purpose vehicle (SPV) from Emanuel Muntmark, who controls Monsson, and Cătălin Mrejeru.

In September, Electrica also completed the purchase of Bihor 1 from them, by taking over project firm Foton Power Energy. The plant will be in the county of the same name, near its capital Oradea, between Inand, Cefa and Madaraș. The deal from three years ago was valued at EUR 4.26 million.

Electrica tapping on European Union funds through National Recovery and Resilience Plan

Last month Electrica received EUR 3.4 million in state aid via the National Recovery and Resilience Plan (NRRP or, in Romanian, PNRR) for a battery storage system of 69.9 MWh in capacity. The envisaged capability is 35 MW. The company’s project includes the construction of transformers, internal lines and fences.

The location is in Fântânele in Mureș county, Transylvania. The project is worth EUR 21.8 million excluding value-added tax.

Electrica already received funding from NRRP, a year ago. It was for PV project Satu Mare 2 of 27 MW in peak capacity, in the Botiz commune. The project firm, Sunwind Energy, is expected to complete it by the end of the year.

Simtel Team said in April that it won the engineering, procurement, and construction (EPC) contract with another firm. The deal for the 50-50 partnership was worth EUR 19.3 million excluding VAT.

Electrica Group supplies 3.9 million customers. The government owns just below 50% of the company, listed in Bucharest and London. Electrica controls Distribuție Energie Electrică România (DEER), a firm controlling one of Romania’s six power distribution regions.