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The International Finance Corporation (IFC) is providing long-term debt financing for the 461-megawatt (MW) Vifor Wind Power Plant in Romania. This project is set to significantly boost the supply of competitively priced renewable energy, playing a crucial role in reducing the country’s greenhouse gas (GHG) emissions and supporting its climate commitments and energy transition goals.
The Vifor Wind Power Plant developed through a joint venture between Rezolv Energy S.A. and global renewable energy company Low Carbon, will be implemented in two phases. Phase 1, currently under construction, will have an installed capacity of 192 MW. Phase 2, which is preparing for construction, will add an additional 269 MW. IFC’s loan for Phase 1 amounts to €21.4 million from IFC’s own account and is part of a larger €291 million financing package alongside commercial banks and other lenders.
Notably, the Vifor project will be one of Romania’s first large-scale greenfield renewable energy projects financed without public support. Once fully operational, it is expected to reduce the carbon footprint of Romania’s energy sector by an estimated 500,000 tons of carbon dioxide equivalent emissions per year, aligning with the country’s goal of reducing net GHG emissions by at least 55 per cent by 2030.
Jan Viton, Financing and M&A Director at Rezolv Energy emphasized the significance of the project “This is a truly landmark project and the first one Rezolv Energy brings to financial close. We are very proud of the interest this financing has generated among a wide spectrum of financial institutions, and we are delighted to have established a core group of lenders including IFC.”
Martin Langham, Managing Director at Low Carbon, also highlighted the project’s impact “Once built, Vifor will be one of the largest wind projects in Eastern Europe and reinforces our track record of working with institutional investors to deliver large-scale renewable infrastructure, while playing a key role in supporting Romania’s efforts to decarbonize its electricity grid.”
Despite progress in reducing GHG emissions, Romania still heavily relies on fossil fuels, with an emissions intensity 1.4 times higher than the European Union average. The planned phase-out of coal for electricity generation by 2032 necessitates an estimated $31.5 billion in investment to facilitate the energy transition in the power generation and storage sector.
Located near Buzau in southeastern Romania, the Vifor Wind Power Plant will also feature a pioneering hybrid energy sales model. This model will combine wholesale electricity market sales and corporate power purchase agreements with commercial and industrial customers and traders.
Ary Naïm, IFC Manager for Central and South Europe, remarked on the importance of the project, “To achieve its climate commitments, Romania needs to accelerate its deployment of clean energy sources. IFC is pleased to partner with Rezolv Energy and Low Carbon on this landmark project, to help demonstrate the bankability of private utility-scale onshore wind generation projects and spur the energy transition in the country and region.”
With a portfolio of $2.1 billion, Romania represents IFC’s largest country exposure in Europe and its 10th largest globally, underscoring the significant role this project plays in advancing the country’s renewable energy infrastructure.
