Wind energy investors in Romania record EUR 900 mln losses in two years

Investors in the wind energy sector in Romania recorded losses of RON 4 billion (EUR 900 million) in 2014 and 2015 due to the changes in the legal system, according to a study concluded by EY at the request of the Romanian Wind Energy Association (RWEA). The association represents the interests of the companies in this sector. The report was made based on the financial reports the companies submitted to the Trade Registry’s Office (ONRC). The net losses of the companies active in the wind energy sector were RON 1.9 billion (EUR 427 million) last year and reached a cumulated value of RON 4 billion in 2014 and 2015. The companies active in this sector have carried out investments totaling EUR 5 billion, according to RWEA. Thus, they have lost almost a fifth of their investments in just two years. The factors which led to significant losses for the most important players in the industry were the depreciation of assets and the loan reimbursement. Investors need 30 years to reimburse the loans accessed to build wind energy parks. However, the life cycle of such a plant is 20 years, according to the EY study. The industry now gets an “improperly calibrated” state help that leads the industry to bankruptcy, shows the same study. The wind energy sector saw a boom between 2010 and 2013, when the state provided a generous support scheme. The scheme was later reduced as the industrial consumers, which had to pay for the support scheme together with the household consumers, were unhappy with the high costs and put pressure on the state to reduce their burden. Romania has wind energy projects with a total installed capacity of over 3TW, most of which were created between 2010 and 2012. The biggest wind parks are located in Dobrogea, eastern Romania. In 2015, Romania’s wind energy production reached 7.04 TWh, representing 13.3% of Romania’s final electricity consumption, according to RWEA. Large wind energy investors in Romania post EUR 450 mln losses editor@romania-insider.com