Construction is expected to begin next month in Romania on what backers claim
will be Europe's largest onshore wind farm with an expected capacity of 600MW.
Formed from the sale of two adjacent sites owned by renewable power developer
Continental
Wind Partners (CWP) to Czech utility company CEZ, the combined site will
generate around 354MW by the end of 2009, with the rest of the turbines
expected to be in operation by the following year.
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Situated in the Dobrogea province of Romania, around 117km from the Black
Sea, the Fantanele and Cogealac sites will represent around 30 per cent of the
renewable market in the country, which also includes large hydroelectric
projects. The project was originally developed by CWP for
Good Energies, an investor in
renewable energy which procured the turbines for the project.
However, despite the scale of the planned Dobrogea project, wind farm
development has been very limited to date in Romania, with a handful of
existing turbines only offering around 7MW of capacity.
"There are about three turbines, very small ones, which you can just see in
the distance from our site with a powerful pair of binoculars," said director of
Good Energies, Andrew Lee. "Effectively Romania has no wind capacity at the
moment."
Lee claimed that the current legislative regime does not encourage
independent renewable power developers to invest. He said that Good Energies had
wanted to back the scheme itself rather than sell to CEZ, but had been forced to
offload the project because Romania's green certificate incentive regime expires
in 2012, despite repeated calls for the government to extend it.
"We are really disappointed not to be building this facility," he said. "We
waited 18 months for the parliament to renew the legislation and in the meantime
companies such as CEZ and others were making strong pitches to us to buy the
assets. Eventually we decided to go down that route."
The Romanian green certificate scheme is similar to one operating in the UK
and was put in place around eight years ago for a 10-year period. The Romanian
government's slow action over renewing the scheme meant that Good Energies was
effectively forced to sell the project to a company which has a sufficiently
large assets to be able to finance the project until the certificate scheme is
eventually extended.
"If you are a utility and not having to use off-balance sheet debt financing,
then you can make the investment anyway and finance it on your balance sheet.
Under European Law the Romanians will have to renew this tariff sooner or later,
" said Lee. "However, we are not going to be able to borrow five hundred
million from the bank at the moment."
The new backers are expecting to get around 35 per cent efficiency from the
turbines, on a par with what would be expected from a similar scheme in
Scotland.
Despite the size of the project, with around 139 turbines initially, Good
Energies claims that it faced little resistance from the local community. "It is
a large facility but then the site is simply huge," said Lee. "It's in quite an
empty part of the country and will be enormously beneficial to the local
population, in terms of the rents farmers are getting for use of their land."
Good Energies is also setting up a charitable foundation for the benefit of
the local population.
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