Copenhagen Infrastructure Partners (CIP) has announced that Radramo Power, which is developing the 396MW Pestera II onshore wind project, has secured a contract for difference (CfD) for 245MW of its capacity.
CIP’s Growth Markets Fund II (GMF II) agreed to acquire Pestera II from its original developers in 2024, pending certain conditions.
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The Pestera II wind project, located in Constanta, southeast Romania, represents a total investment of €500m ($543.3m).
The project benefits from strong wind resources and proximity to existing transmission infrastructure.
Pestera II secured the CfD contract after participating in Romania’s first CfD auction in November 2024.
The contract has a duration of up to 15 years from the commercial operation date (COD) at a strike price of €64.9 per megawatt hour (MWh).
CIP partner Radu Gruescu stated: “We are pleased to have participated successfully in the first CfD auction where the Pestera II project has secured a contract. The auction has delivered much-needed investor confidence to attract the capital necessary for the construction of a very significant volume of new renewable power generation capacity and we would like to commend the Ministry of Energy, Transelectrica and the other relevant stakeholders for making this possible.
“We expect that Pestera II and the other projects contracted under the CfD scheme will deliver long-term affordable power that strengthens Romania’s energy independence and supports the country’s decarbonisation goals. Having secured the CfD contract, we expect the Pestera II project to commence construction later this year and, beyond that, we look to expand CIP’s presence in Romania’s energy transition with further investments.”
The Romanian CfD scheme is set to introduce 3GW of new onshore wind and 2GW of new solar capacity, with two auctions in 2024 and 2025. This initiative is supported by €3bn of funding from the EU Modernisation Fund.
The European Investment Bank (EIB) has committed €30m as a co-investment in the Pestera II project.
EIB vice-president Ioannis Tsakiris stated: “The European Investment Bank is proud to support Romania’s clean energy transition through our €30m investment in the Pestera II onshore wind project. This flagship initiative not only enhances Romania’s renewable energy capacity but also contributes to the EU’s ambitious climate and sustainability objectives.
“I commend Copenhagen Infrastructure Partners for their leadership in advancing this landmark renewable energy project, which strengthens energy security, fosters sustainable economic growth and accelerates the green transition. Together, we reaffirm our unwavering commitment to a more sustainable, resilient and climate-neutral Europe.”
This investment is part of the capital committed to GMF II, which also received a $100m commitment from the EIB earlier in 2024.
CIP recently expanded its portfolio by agreeing to acquire the Morecambe offshore wind project in the UK.
The 480MW project, located 30km offshore Lancashire in the eastern Irish Sea, is being acquired through CIP’s Copenhagen Infrastructure V (CI V) fund from COBRA Group and Flotation Energy.
