SOFIA (Bulgaria), August 12 (SeeNews) – U.S.-based EIG Renewables plans to become a leading player in the alternative energy market in southeastern Europe, driven by innovative solutions and good supply chain, the company chair said.
“We think the balkans create a great opportunity, although there are some risks,” David Brown, chairman and largest shareholder in the Delaware-registered corporation, told SeeNews in a telephone interview. He did not elaborate.
The company has a wind power project for some 600 megawatts (MW) in Poland and is currently preparing the launch of projects for more than 800 MW combined capacity in Macedonia, Bulgaria and Kosovo. It also has projects in Romania.
EIG has not set a limit on capacities it plans to build in the region and takes into account objective obstacles like the priority of macroenergy projects, thermal and nuclear, in the strategies of governments in the region, and competition with other renewable technologies like hydropower for portion of the grid's capacity.
The closure of four 440-megawatt Soviet-made reactors at Bulgaria's sole nuclear power plant of Kozloduy between 2002 and 2006 aggravated electricity deficits in neighbouring countries. Currently all states in the region have multibillion plans to catch up with insiffucient generation capacities, but lag behind with their implementation.
European Union newcomers Bulgaria and Romania should significantly increase the share of electricity they generate from renewable sources to meet requirements of the bloc. Renewables must cover 33% of the annual gross consumption of electricity in Romania and 11% in Bulgaria by 2010.
“All our agreements have been accepted by the banks for funding [...] We feel very comfortable with our lenders,” said Brown, but named no bank.
The development in Poland is worth approximately 2.0 billion euro ($3.0 billion) and the other projects are also in the range of “a couple of billion dollars,” he added, but did not elaborate.
The company’s own funds are put mostly into development companies with partners of the respective countries that know the local situation, while EIG brings financing and engineering expertise. EIG does not take into account green certificates and mechanisms under the Kyoto protocol to secure funding.
“We will make an announcement on a new technology in the solar area [...] we believe we'll increase output and reduce costs,” said Brown.
EIG says it has established a stable supply chain of photovoltaic panels with deliveries within two months and hopes to get first deliveries of 20 turbines of 2.5 MW each from a “large manufacturer” within 14 months.
“The photovoltaic [supply] is actually simpler than the turbines. Although we believe that the turbine market over the next 12 months will loosen up because of production in countries like China,” said Brown.
EIG will compete in southeastern Europe with projects of Swiss energy group Atel, Spain's Helium Energy and Iberdrola Renewables, Austria's BEWAG, U.S. power group AES and Norwegian Scatec, to name a few.
($ = 0.6661 euro)
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