The Government of Romania is acquiring shares in domestic energy companies through its SAPE investment holding, which also has plans to build power plants and develop other projects. Its latest move was to reach a deal to take over the 5 MW Dârvari solar power plant and double it in size.
The Energy Shareholdings Administration Association or SAPE told Profit.ro that it signed a contract with Foto Solar for the takeover of the private firm’s 5 MW solar park in Prahova county in central Romania by April 29. The government-controlled fund management company revealed it intends to increase the capacity of the Dârvari facility to 10 MW or more.
Transaction at below market price
SAPE said its renewable energy investment strategy was developed in line with the European Green Deal and the specific needs of the national energy system. It declined to disclose other details of the transaction but it said the price is below the market level.
SAPE is one of the most profitable state-owned companies in Romania
The holding was founded in 2014 to manage the government’s minority stakes in energy companies. It is one of the most profitable state-owned companies in Romania.
It has a share in ownership in Enel’s local subsidiary, which provides the largest part of its revenue, the article notes. SAPE is developing projects for a thermal power plant in Bucharest, a gas-fired power plant in Fântânele and oil facilities in Constanța, in partnership with Oil Terminal.
Current owner mostly produced losses since 2015
The Dârvari solar power plant was completed in 2015. Foto Solar is controlled by Mag Eco Development and its owner is AG Investments from Italy, which used to operate the Ductil Steel plant.
SAPE recently obtained a provisional license for the production of electricity from the National Energy Regulatory Authority (ANRE) after applying together with Foto Solar, according to the report. The solar power plant is on a land lot of 12 hectares. Foto Solar reported losses each year except for 2019.