Romania’s wind power industry losses have reached RON 4 bn in 2014-2015

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The net loss of the wind power industry in Romania increased by RON 1.9 billion last year, totaling RON 4 billion in 2014 and 2015, an EY study commissioned by Romanian Wind Energy Association (RWEA) shows, a press release informs on Tuesday.

According to the study, the results are worrying for the investments in the electricity field from wind resources which, totaling about EUR 5 billion, is by far the most important investment in the Romanian energy system after 1989.

According to the study, the renewable energy sector is in financial deadlock.

Thus, in the two years analyzed, there is a serious asset depreciation of RON 4.1 billion. At the same time, there are needed 30 years to repay the loans taken to build wind power plants, while the life of a plant is 20 years.

“The investors are caught in a carousel: they continued to accumulate huge losses in 2015, their assets are still devaluing, thus they are unable to repay the loans,” Claudia Brandus, RWEA president said.

The document notes that the state aid is ‘incorrectly calibrated’ and pushes the industry toward bankruptcy.

“Given the electricity average price of RON 166 / MWh recorded in 2015, according to OPCOM data, as well as the current one, which came below this level, it’s obvious that the new generation plants, such as wind power plants, need state aid, according with EU rules for the investment amortization,” the study also reads.

Moreover, RWEA asks the Gov’t and Parliament a fast and responsible action to save the renewable energy industry from financial collapse and to rebuild the confidence in the Romanian investment environment.

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