Copenhagen Infrastructure Partners (CIP) has announced that Radramo Power, the company holding the rights to the ~400MW Pestera II onshore wind project, has entered into a binding Contract for Difference (CfD) for 245MW of its capacity. Earlier in 2024, the Growth Markets Fund II (GMF II), a fund managed by CIP, agreed to acquire the project from its original developers subject to fulfilment of certain customary conditions.
Pestera II is one of the largest onshore wind projects in Romania with up to 396MW installed capacity and a total investment of approximately EUR 500 million. The project has been awarded the CfD contract following its successful participation in Romania’s first CfD auction in November 2024, where it secured a contract with a duration of up to 15 years from COD at a strike price of EUR 64.9/MWh. Located in Constanta in Southeast Romania, and benefitting from strong wind resource and close proximity to existing transmission infrastructure, Pestera II will be one of the largest renewable energy projects in Romania and is expected to significantly contribute to enhancing the security of supply in Romania and deliver attractively priced and sustainable power for the long-term. The Romanian CfD scheme aims to deliver 3GW of new onshore wind and 2 GW of new solar capacity across two auctions in 2024 and 2025. The scheme is supported with EUR 3 billion of dedicated funding from the EU Modernisation Fund.
The European Investment Bank (EIB) has committed EUR 30 million of co-investment into the project, alongside the capital that will be invested by EIB in the project as part of the group of investors that have committed capital to GMF II. The EIB has earlier in 2024 also announced a commitment of USD 100 million to GMF II.
Radu Gruescu, Partner in CIP, said: 'We are pleased to have participated successfully in the first CfD auction where the Pestera II project has secured a contract. The auction has delivered much needed investor confidence to attract the capital necessary for the construction of a very significant volume of new renewable power generation capacity and we would like to commend the Ministry of Energy, Transelectrica, and the other relevant stakeholders for making this possible. We expect that Pestera II and the other projects contracted under the CfD scheme will deliver long-term affordable power that strengthens Romania’s energy independence and supports the country’s decarbonisation goals. Having secured the CfD contract, we expect the Pestera II project to commence construction later this year and, beyond that, we look to expand CIP’s presence in Romania’s energy transition with further investments.'
'The European Investment Bank is proud to support Romania’s clean energy transition through our EUR 30 million investment in the Pestera II onshore wind project. This flagship initiative not only enhances Romania’s renewable energy capacity but also contributes to the EU’s ambitious climate and sustainability objectives. I commend Copenhagen Infrastructure Partners for their leadership in advancing this landmark renewable energy project, which strengthens energy security, fosters sustainable economic growth, and accelerates the green transition. Together, we reaffirm our unwavering commitment to a more sustainable, resilient, and climate-neutral Europe,' said EIB Vice-President Ioannis Tsakiris.
Source: Copenhagen Infrastructure Partners
