EON Plans Wind-Energy Growth in Romania to Reap State Incentive

February 27, 2013 by  
Filed under Green Energy News

EON SE (EOAN), Germany’s biggest utility,
plans to build at least 100 megawatts of wind power in Romania
by the end of 2014 to take advantage of government support for
clean energy.

The expansion may reach as much as 300 megawatts should
Romania maintain a sufficient level of incentives, Frank
Hajdinjak, chief executive officer of EON’s local unit, said
today in Bucharest.

Romania is seeking to attract about 5 billion euros ($6.6
billion) in energy investments through 2020 to meet rising power
demand without adding to emissions. Even so, the government may
rein in support for renewables, joining Spain, France, Italy and
the U.K. in curtailing aid to avoid overcompensating companies.

The eastern European country, which offers two so-called
green certificates for each megawatt-hour generated from wind,
may limit their maximum value and cut the number given out,
Minister Delegate for Energy Constantin Nita told Bursa
newspaper yesterday. Romania has about 1,600 megawatts of
installed wind capacity, according to data from the regulator.

“We have to wait for the final board decision on our
investment plan as it depends very much on how much we can
develop,” Hajdinjak said in an interview. “The cost for a
megawatt is around 1.6 million euros.”

Hajdinjak said last May that EON would decide whether to
continue developing wind projects in Romania or sell them.

To contact the reporters on this story:
Andra Timu in Bucharest at
atimu@bloomberg.net;

To contact the reporter on this story:
Irina Savu in Bucharest at
isavu@bloomberg.net

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