The INVL Renewable Energy Fund I managed by INVL Asset Management, the leading asset management company in Lithuania, is beginning activities in Romania and plans to invest approximately EUR 120 million in the development of solar farms it has acquired.<\/p>\n
Under agreements that have been signed, the fund has acquired two companies which are developing solar power plants with a capacity of 166 megawatts (MW) in Romania.<\/p>\n
\u201cWe are growing and diversifying the geography of the portfolio. Romania is a very rapidly developing and promising European Union market which is giving increasing attention to green projects. We see huge potential in this market for developing renewable energy projects and we believe that these investments of ours will not only reduce pollution of the environment but will also allow us to earn an attractive return for investors,\u201d says Liudas Liutkevi\u010dius, Managing Partner of the INVL Renewable Energy Fund I.<\/p>\n
The solar energy projects in Romania that are being added to the fund\u2019s portfolio already have approved grid connection conditions. The solar plants, in which the fund plans to invest roughly EUR 120 million, should become operational in 2024.<\/p>\n
\u201cWe constantly monitor electricity markets in EU countries and evaluate varied investment opportunities. We have been watching the Romanian market since the fund\u2019s inception, but only went into action after the state amended electricity legislation to allow the development of power generation facilities on the basis of power purchase agreements, or PPAs,\u201d Liutkevi\u010dius notes.<\/p>\n
\u201cThe Romanian market is attractive for its geographical location and annual hours of sunlight \u2013 that makes it possible to achieve about 20% higher solar power plant efficiency comparing to Poland and increase the competitiveness of the electricity price in the market. The changed legislative environment will no doubt attract big investments to the renewable energy sector and enable Romania to address structural challenges related to its electricity production balance and energy independence,\u201d he adds.<\/p>\n
Electricity consumption in Romania last year totalled more than 60 terawatt hours (TWh), or about 5 times the level in Lithuania. Romania imports some of its electricity, i.e., it does not have enough domestically produced electricity to satisfy demand. It is a nuclear energy country, but planned upgrades of nuclear power plants in the next few years mean that some reactors will have to be halted.<\/p>\n
\u201cRenewable energy is clearly an effective way to increase any country\u2019s energy independence, security and resilience to commodity price shocks. We plan to invest more in sustainable energy projects in Romania. That will create opportunities to work together with renewable energy project developers. The fund\u2019s managers are also actively expanding the portfolio in other markets,\u201d the managing partner of the INVL Renewable Energy Fund I says.<\/p>\n
Under the INVL Renewable Energy Fund I\u2019s investment strategy, investors\u2019 money is being put to work in renewable energy projects (on-shore wind and utility-scale solar farms) in EU territory. The fund is currently focusing on Central Eastern European countries, where it sees big growth potential.<\/p>\n
After the acquisition in Romania, the fund\u2019s portfolio includes development projects for more than 200 MW of solar farms. All the projects already have conditions for grid connection. Construction of the solar farms will take place in 2023-2025.<\/p>\n