October 10 (SeeNews) - INVL Renewable Energy Fund I, run by Lithuania's INVL Asset Management, said on Monday that it has concluded an agreement to acquire a 174 MW solar farm project in Romania.
The fund is acquiring the project before it has secured grid-connection capacity, which is envisaged in the first quarter of 2023, with plans to reach the construction phase in the fourth quarter next year, it said in a press release.
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The acquisition will increase total investments in the fund’s projects in Romania, which may reach approximately 350 million euro ($343 million) and will bring the total capacity of the eight solar farm projects under development locally to 442.7 MW. Of those, the projects for nearly 268 MW of capacity already have grid connection conditions and 42.7 MW have building permits.
"We entered the Romanian market at the start of this year, and the deals we have signed shows our determination to become an important player in this market," INVL Renewable Energy Fund I managing partner Liudas Liutkevicius said.
The first solar power plant projects will reach the construction phase already at the end of this year, and construction works for the first solar farm will start in the first quarter of 2023. Construction of all the solar farms should be completed by the end of the third quarter of 2025, Liutkevicius added.
The INVL Renewable Energy Fund was established by INVL Asset Management in July 2021. The fund invests in renewable energy projects at the early and mid-stage of development, including construction of new power plants, development and/or acquisition of the infrastructure necessary for the operation of power plants, as well as effective management of existing power plants in the EU and member states of the European Economic Area.
The fund is currently conducting an additional fund-raising round which will end in the middle of November. Under its agreed investment strategy, it targets renewable energy projects, namely onshore wind and utility-scale solar farms within EU and NATO member states. At present, the fund is focused on Central Eastern European countries, where it sees big growth potential.
($=1.0202 euro)