Austria-based Enery acquires, develops, builds, and operates renewable energy plants throughout Central and Eastern Europe. It has a 280 MW operational portfolio spread across 57 sites in five countries. Severin Vartigov is Chief commercial officer at Enery.
Mr. Vartigov, Romania is among Enery’s largest markets with currently 11 locations in operation. What attracted the company to this country in the first place and do you plan on adding new projects here?
Our decision to invest in renewable projects in Romania is rooted in Enery’s commitment to environmental sustainability and responsible business practices. Romania offers an ideal landscape for such investments, with a combination of favourable business conditions, a robust market size, and ample opportunities for growth.
By investing in renewable energy sources like wind, solar, and hydro, we are actively contributing to the reduction of carbon emissions and combating climate change. This not only aligns with our corporate values but also resonates with the increasing global emphasis on cleaner energy solutions.
This strategic move aligns with Enery’s commitment to the environment and positions us favourably within the market. The country's growing emphasis on renewable energy presents us with a chance to diversify our energy portfolio by contributing to sustainable employment creation and economic growth.
Our successful collaboration with Romanian corporates demonstrates how prime industrial companies can successfully collaborate with renewable industry leaders like Enery to secure the construction of large-scale green energy projects supporting the local communities, country’s decarbonization targets and finally, the sustainable economic growth.
As in other countries in Southeast Europe, the PPA market in Romania is still developing but Enery recently gave it a boost with a new virtual power purchase agreement with Ursus Breweries. Tell us a bit more about the deal.
The Central and Eastern European PPA markets are less developed, so we are very proud to be among the pioneers bringing long-term green power solutions to local industries.
During 2022, Enery achieved a significant milestone by successfully acquiring two portfolios of operational plants. One of the portfolios consists of solar energy, and the other one is a mix of technologies, dominated by wind energy. We made these acquisitions possible through Power Purchase Agreements that we established with local corporates.
The partnership with Ursus Breweries owned by Asahi Europe & International (AEI) marks our fourth PPA in Romania and involves Enery’s commitment to build a new 50 MWp solar plant. The heart of this partnership lies in our dedication to deliver green, affordable electricity. This initiative enables our partner, Asahi Europe & International (AEI), to sustainably power its breweries across Romania.
The agreement, spanning over 12 years and commencing in 2024, establishes Enery as the supplier of choice for Asahi Europe & International (AEI) and their facilities in Romania, ensuring a consistent renewable energy supply. This is currently the largest corporate PPA in the country and the fixed price secures predictability of the energy costs, better and more accurate budgeting and higher ESG rating for the off taker. On the other hand, Enery was endorsed as a reliable partner by one of the most progressive industrial companies in the region with clear sustainability targets and innovation-driven operations. Both parties managed to negotiate a bankable, mutually beneficial offtake agreement applying the best practices in the field.
Compared with other countries where Enery is present, do you consider the Romanian power market to be competitive?
The Romanian power market is competitive and dynamic. While the market might not be as mature as some of the more established Western markets, it is rapidly evolving and showcasing signs of increased competition. The presence of various players, including local and international companies, is contributing to a growing competitive landscape. Additionally, regulatory changes and initiatives to promote market coupling and renewable energy projects are further improving the overall business climate and turning the Romanian market into an attractive investment destination in the region.
However, there are still aspects where the market can enhance its competitiveness, such as addressing infrastructure challenges.
Overall, the Romanian power market is driven by its ongoing transformation and efforts to align with regional and global energy trends. We see a clear commitment towards the expansion of renewables with the planned CfD auctions that will absorb a sizable chunk of the development pipeline. On the other hand, there are many progressive local and international consumers with an appetite for renewable energy that will face scarcity of projects given the attractive CfD terms. We believe that the above, aligned with the excellent cross border interconnection of the country, will open the doors for virtual PPAs with assets located in neighbouring countries. To facilitate such transactions, Romania shall become a full AIB (Association of issuing bodies) member to allow for physical transfer of internationally recognized Guarantees of Origins (GOs).