Econergy, in collaboration with Nofar Energy, has commenced operations for the Ratesti Solar Project in Romania. This ambitious solar power venture, situated in Southeastern Europe, stands as the largest of its kind in the region, boasting a remarkable capacity of 155 MW and representing an investment of €102 million.
Expected to begin supplying full-scale electricity to the grid in the imminent weeks, the Ratesti Project is forecasted to power approximately 100,000 households with clean, green energy. More significantly, it’s estimated to curtail CO2 emissions by an impressive 168,000 tons annually within Romania.
This marks the inauguration of the first among a series of projects underway in Romania, collectively totaling about 2.2GW. The Ratesti Project serves as Econergy’s flagship endeavor in Europe, with plans to connect several new projects, already under construction, during the first half of 2024. These upcoming projects are anticipated to yield a combined capacity of 234MW, further cementing Econergy’s role as a leading Independent Power Producer (IPP) in the region.
Eyal Podhorzer, Co-Founder and CEO of Econergy, conveyed his enthusiasm about the Ratesti Project’s commercial launch, highlighting its pivotal role in the company’s growth and contribution to a sustainable energy future. Podhorzer stated, “Ratesti, our flagship project in Europe, signifies a significant milestone not only in terms of shareholder value but also in our commitment to advancing renewable energy. As we move forward, we aim to connect additional projects across Europe, projecting substantial annual revenues exceeding €160 million by 2024.”
The Ratesti Project in Romania is a joint venture equally owned by Econergy and Nofar Energy, with Econergy providing project management services (EPCm) and securing a ten-year management agreement following its grid connection in exchange for 4% of the project’s revenue.
Key Details about the Ratesti Project:
Installed Capacity (MW): 155
Company Ownership Share: 50 percent
Project Construction Cost (€m): 102
Expected Average Annual Revenue in the First Five Operational Years (€m): 19.8
Expected Project EBITDA for the First Five Operational Years (€m): 17.2
The project’s grid connection follows a landmark €60 million financing agreement with Raiffeisen Bank International. This financing agreement marks a milestone in Romania, being based on electricity market sales without the requirement for a Power Purchase Agreement.