EDPR Solar

Translated version of this PSD: Romanian

Project Description

The EBRD is considering providing a senior loan of EUR 63 million to finance the construction, commissioning, and operation of eight solar photovoltaic plants, totalling 65MW, located in Southern Romania. The Project will support Romania in increasing its renewable energy capacity and to meet the EU’s renewable energy targets.

Transition Impact

Romania has committed itself to generate 20 per cent of its electricity output from renewable sources by 2020 to help it meet its requirements under EU law. The Project will directly contribute to the achievement of these targets by increasing the generation of renewable electricity.

The Project could attract other private sector investors to the nascent Romanian solar sector and demonstrate the viability of project finance structures in a market that has historically relied largely on corporate finance.

The Client

The Borrower is expected to be a Romanian subsidiary of EDP Renováveis (EDPR). The subsidiary is expected to own 100% of each solar photovoltaic plant. EDPR is the third largest wind energy producer in the world with installed capacity of 7.5GW at December 2011.

EBRD Finance

The project will be financed through an A/B loan structure of up to EUR 63 million.

Project Cost

The total project cost is approximately EUR 89.9 million (excl. value added tax).

Environmental Impact

Category B. The Bank’s environmental and social due diligence was supported by an international consultant, who visited each of the six solar PV project sites and completed an environmental and social appraisal of the Company and the individual projects. The environmental and social due diligence determined that potential environmental and social impacts could be readily identified and were amenable to satisfactory mitigation.

Due diligence particularly focused on Burila Mica of 7.5MW and in Mehedinti County. Most of Burila Mica will be within the Blahnita Natura 2000 area (ROSPA 0011). Although within the Natura 2000 areas, the solar plant will be located on current or former agricultural land that does not support significant biodiversity values, and will not affect the conservation objectives of the respective Natura sites.

The Company has agreed to communicate highlights of construction activities to local authorities near the facility and to post signs as needed to notify residents of heavy traffic and other activities. International best practices will be employed to control impacts from construction, including noise and erosion. To avoid nuisance disturbance of nearby residents and wildlife, security lighting at all sites will be triggered by motion sensors rather than being continuous. Within the fences that enclose the Burila Mica facility, the Company will encourage and assist native vegetation to be re-established on these former agricultural lands and will control grasses and other vegetation only as needed to keep vegetation from shading the solar arrays. This will provide improved habitat for increased biodiversity.

The EBRD will monitor the status of the project’s environmental and social performance through annual reports submitted by the Company, and by visits to one or more sites if needed.

Technical Cooperation

None.

Company Contact

Ms. Celma Joao Batista Pires
EDP Renewables, Serrano Galvache, 56
Centro Empresarial Parque Norte
Edificio Encina, 1st
CP 28033 Madrid
Spain

 

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