Austrian energy group Verbund said it will write down a significant part of its investment in one of the largest wind parks in Romania due to regulatory changes.

“Regulatory intervention in the market for green electricity certificates by the Romanian government and a massive surplus of green electricity certificates are pushing down revenue at Verbund’s Romanian wind farms. Due to trigger factors, an impairment test was performed, revealing the need to recognize a write-down. This depresses the group result by around EUR 144 million,” Verbund announced in a note for investors.

The group has invested some EUR 380 million in its wind farm in Casimcea, in the Dobrogea region, close to the Black Sea shore. The park has an installed capacity of 225 MW and became operational in 2013.

Romania’s Government cut the initial generous subsidy scheme for green energy in 2013. This determined international investors to rethink their strategy.

Andrei Chirileasa, andrei@romania-insider.com