Wind power industry losses in Romania reaching EUR 1 billion

Photo: Pixabay


October 19, 2016






October 19, 2016





Ernst & Young (EY) study, commissioned by the Romanian Wind Energy Association (RWEA), showed that the net loss of the wind power industry in Romania for 2015 is EUR 421 million, making the total losses in 2014-2015 up to EUR 909 million.

Wind power projects, worth about EUR 5 billion in total, are the most important investments in the Romanian energy sector for the past two and a half decades. However, now it is estimated that the investors will need up to 30 years to repay loans, but the life cycle for wind power plants is just 20 years.

Due to the state aid that is “incorrectly calibrated”, as the study notes, investors in this sector are now facing the bankruptcy.

“The investors continued to accumulate huge losses in 2015, their assets are still devaluing, thus they are unable to repay the loans,” said Claudia Brandus, RWEA president in her comment of the situation in the wind power industry.

As the study notes, according to Romanian gas and electricity market operator (OPCOM) electricity average price in 2015 was EUR 37 per MWh. Today is even below that level, so “it’s obvious that the new generation plants, including wind power plants, need state aid, according with EU rules for the investment amortization”.

Following the results shown in the study, RWEA urges for “fast and responsible action” by the Romanian government and Parliament in order to “save the renewable energy industry from financial collapse and to rebuild the confidence in the Romanian investment environment”, reports Romanian Journal.


Tags: ,
Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

epcg gvozd 2024.

EPCG secures financing for Gvozd wind farm

03 October 2022 - EPCG is blaming the pandemic for the delay in the implementation of the 54.6 MW Gvozd wind farm project, Vijesti reported

CE Oltenia OMV Petrom four PV plants JVs

CE Oltenia, OMV Petrom to build four PV plants through JVs

03 October 2022 - OMV Petrom and CE Oltenia agreed to build four solar parks with a combined capacity of 450 MW at former coal mining locations in Romania

solar wind investments EU price cap

Wind, solar investors threaten to leave Europe because of revenue cap

03 October 2022 - The EU's wind and solar industries are threatening investments could go elsewhere after EU energy ministers voted to roll out revenue caps

Albania subsidize solar thermal collectors households up to 70

Albania to subsidize solar thermal collectors for households with up to 70%

03 October 2022 - Albania is conducting a program for the installation of solar thermal collectors for households, where it will cover 70% of the expenses