Translated version of this PSD: Romanian
The EBRD is considering providing a senior loan of €58.2 million to finance the commissioning and operation of Vutcani (24MW) and Sarichioi (33MW) wind farms, located in the Moldova and Dobrogea regions respectively. Both wind farms are expected to start operating by the end of 3Q 2012. The Project will support Romania in increasing its renewable energy capacity to meet EU’s green energy quotas.
To meet its requirements under EU law, Romania will have to increase the share of renewable energy as a proportion of its total electricity output to 20 per cent by 2020 from the current level of 3 per cent. The Project will directly contribute to the achievement of these targets by increasing the generation of renewable electricity.
Furthermore, the Project will strengthen the project finance market in a country that has historically relied to a large extent on corporate finance structures to develop power assets.
The Project is controlled and developed by EDP Renováveis (EDPR) through EDPR Romania SRL.
EDPR is the third largest wind energy producer in the world with installed capacity of 7.5GW at December 2011, corresponding to an output of 16.8TWh in 2011 (a 17 per cent growth over the 14.4TWh generation recorded in 2010). Currently, EDPR’s pipeline includes 500MW under construction and 20,945MW under development.
The wind farm will be financed through an A/B loan structure of up to €58.2 million.
The total project cost is roughly €83 million.
Categorised A, requiring disclosure of an Environmental and Social Impact Assessment (ESIA) package prior to Board consideration in accordance to the Bank’s Environmental and Social Policy. Both the Vutceni and Sarichioi wind projects have been constructed and commissioned and as a result the ESIA disclosure is only related to the Bank's participation in the financing of the Project. Disclosure under Romanian law was completed prior to construction.
The Bank’s Environmental and Social Due Diligence (ESDD) has shown that Vutcani wind farm is fully compliant with the Bank's PRs and as a stand-alone project would be categorised B, as potential environmental and social issues have been readily assessed and mitigated and the site is not located in a sensitive area.
The Sarichioi wind farm, although small and not located directly in any designated protected areas or Natura 2000 area, is within the wide bird migratory route known as Via Pontica. Upon acquisition of this wind farm, EDPR undertook additional biodiversity assessments and agreed with the environmental regulators and Romanian Ornithological Society (SOR) on reducing the number of wind turbines at Sarichioi from 20 to 11 and additional monitoring. This additional monitoring is currently being implemented. Following the Bank’s ESDD, the monitoring regime has been further strengthened, including a longer duration as well as development of a shutdown/slowdown procedure if that is necessary to avoid bird collisions. Taking into account the planned mitigation measures as agreed with SOR in the ESAP, the Bank's ESDD has confirmed that the Project will allow for Sarichioi also to operate in compliance with National and EU biodiversity requirements and Bank PRs.
The ESDD has confirmed that EDPR has the institutional capacity to implement the Bank’s Performance Requirements.
The Bank's supplementary ESIA documentation, consisting of a Stakeholder Engagement Plan (SEP) and an updated Non-Technical Summary (NTS), together with the National EIA and permits, were disclosed on the 23rd July 2012 to begin the 60-day public review and comment period.
The ESIA package and Executive Summary have also been released for public review by the project sponsor on its website.
The Bank will monitor the implementation of the project.
There is an Environmental and Social Impact Assessment available for this project.
Celma Joao Batista Pires
EDP Renewables, Serrano Galvache, 56
Centro Empresarial Parque Norte
Edificio Encina, 1st
CP 28033 Madrid
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