Insolvencies could hit the renewable energy sector in Romania this year, as the boom is over.

The renewable energy sector has attracted investment of billions of euros over a period of three years. Investors have built hundreds of wind and photovoltaic farms.

However, the state's decision to cut subsidies for renewable energy has stopped the development of new projects. The local banks’ lack of interest to fund new projects and a drop in green certificates prices on the stock market due to oversupply also contributed to this.

“There are still ongoing projects, but the number is very low,” said Niculae Havrilet, president of energy authority ANRE, cited by local Economica.net.

“We’ll see many cases of insolvency. Things couldn't go worse,” according to Ciprian Glodeanu, president of the Romanian Association for Photovoltaic Energy.

The wind farms in Romania have an installed capacity of 3,000 MW, while the solar parks have a capacity of 1,400 MW.

Irina Popescu, irina.popescu@romania-insider.com