Premier Energy, Motor Oil launch joint venture for hybrid power plants in Romania

Premier Energy joined forces with Greece-based Motor Oil by establishing a firm that bought two solar power projects of 86 MW in combined capacity. They would feature energy storage systems of 18 MW in total operating power, making them hybrid power plants.

Motor Oil is following in the footsteps of other major Greek energy companies, which began to focus on energy transition and decarbonization efforts abroad as well. The oil refiner turning greener said its subsidiary MORE, standing for Motor Oil Renewable Energy, bought a 49% stake in a joint venture in Romania. Its majority owner is the company Alive Renewable Holding Limited, operating under Premier Energy.

The new firm is taking over two photovoltaic projects with a total installed capacity of 86 MW, complemented by energy storage systems with 18 in combined operating power, Motor Oil said.

Completion is expected in the second half of next year, the companies revealed. The locations are in Buzău county northeast of Bucharest.

The acquisition is subject to antitrust and foreign direct investment approvals. Alive Capital from Premier Energy group is tasked with coordinating project development.

Motor Oil to expand throughout Southeastern Europe

Moreover, Motor Oil is in search of green opportunities and synergies in Bulgaria, Serbia and Croatia, where it has fuel sales businesses, Energypress reported, quoting unnamed insiders.

Its particular focus is on power purchase agreements or PPAs, the article adds, for risk mitigation and access to bank loans.

Premier Energy is fresh from Bucharest IPO

Premier Energy raised EUR 140 million last month at an initial public offering on the Bucharest Stock Exchange. It implied a market capitalization of EUR 490 million.

The company is Romania’s third-largest natural gas distributor and one of the largest suppliers. Its renewable energy portfolio of operating and projects under development amounts to more than 1 GW. Premier Energy said it supplies and distributes electricity to 70% of the population of Moldova or almost one million consumers.