Romania becomes less attractive for investment in renewable energy projects, EY shows

Romania gets out of the top 40 countries attractive for renewable energy projects, EY’s “Renewable energy country attractiveness index (RECAI)” biennial report reveals, after when last year the country ranked the 34th.

“The drastic correction of the aid scheme for electricity from renewable sources and the uncertainty regarding the prospects of this scheme on short, medium and long term, have led to a drop of Romania’s attractiveness for new investments in the field. Many wind farms and solar power owners, threatened by bankruptcy, seek to sell them, while the potential buyers are offering prices still unacceptable. Moreover, considering the wind turbine towers as taxable special constructions, this further contributed to worsening investor’s sentiment,” Valeriu Binig, Partner in the Advisory Services, EY Romania stated.

According to EY estimates, the recovery term of an investment in a wind project developed in Romania exceeds 30 years.

France climbs one position in EY’s RECAI, reaching 7th position following the announcement regarding its intention to attend the purchase tender of 3GW capacity solar panels the next three years. Meanwhile, building a production plant of solar panels is in full progress in this country, covering 1,000 kilometers of roads.

Belgium (18th), Sweden (20th), Ireland (30th), Norway (32th) and Finland (35th) also climbed in the top 40 countries. In Norway, the new underwater tunnel works, worth USD 2.3 billion, to Germany creates a new great opportunity for wind and hydro production for the two countries. Germany, along with the United States, China, India and Chile, remains steadfast in the top five countries attractive for investment.

Regarding green certificates, Europe recorded the greatest increase in activity, according to the EY report, with a total of issued green certificates since 2007, amounting to USD 54.9 billion compared to USD 19.8 billion in North America and USD 4.5 billion in Asia.

aid schemeAttractivenesscapacity solarelectricity from renewable sourcesEYEY reportgreen certificatesinvestmentPartner in the Advisory ServicesRenewable energy country attractiveness index (RECAI)renewable-energy projectsValeriu Binig
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