Renewable energy solutions provider Scatec has entered a 15-year contract-for-difference (CfD) agreement with Romanian electricity market operator Opcom.  

The CfD will secure pricing for almost 70% of the projected output from Scatec's 190MW solar portfolio in Romania, with the remaining electricity to be sold on the Romanian wholesale market. 

The contracts were allocated during Romania's inaugural CfD auction, financed by the EU Modernisation Fund.  

The fund is an initiative of the European Union aimed at assisting member states in achieving their energy objectives.  

In this first round, 1.5GW of solar photovoltaic (PV) and onshore wind capacity was awarded in Romania. The rest of the planned 5GW total is anticipated to be allocated during 2025.

Scatec CEO Terje Pilskog stated: “We are very pleased with the award in Romania, which demonstrates our ability to apply our global track record within renewable energy auctions to new markets.  

“Romania has supportive market fundamentals where Scatec can utilise its competitive strengths to build a position. We look forward to continued collaboration with Defic Globe, which already has a strong position in the Romanian renewables market." 

This is Scatec's initial venture into the Romanian market, where it is developing projects in partnership with local entity Defic Globe.  

The solar projects are located in Dolj and Olt counties in Romania's southern region. 

Romania’s position as a compelling market is based on its commitment to the energy transition along with well-established mechanisms for power purchase agreements (PPAs) through CfD auctions, corporate PPAs and a developed electricity market. 

The estimated capital expenditure for constructing the solar facilities stands at €140m ($144.8m).  

Funding will comprise non-recourse financing and contributions from Scatec and its partners, aiming for 75% leverage.  

Project financial closure and commencement of construction are set for the second half of 2025. 

Scatec will hold 65% ownership interest in the solar plants and be responsible for procuring critical components, which represent one-third of the total capital expenditure.  

Defic Globe Enerji, a subsidiary of Emsolt Investments and YEO Teknoloji Enerji, will hold a 35% stake and deliver turnkey engineering, procurement and construction services for the project.  

Scatec will also provide operations and maintenance, and asset management services for the portfolio.