INVL Renewable Energy Fund I to acquire six solar projects in Romania

Following the completion of these transactions, the INVL Renewable Energy Fund I portfolio of projects under management in Romania will increase to 268.7 MW. In addition, all the solar projects within the Fund’s current portfolio have already secured approved grid connection terms.

Subsequently, the Fund’s overall investment into Romania will now exceed €200 million, factoring in existing solar power plant projects that have been in development there since June 2022. It is also expected that the new power plants will commence commercial operations in 2024 whilst commissioning of the full portfolio is expected in 2H25.

According to Liudas Liutkevicius, Managing Partner of the INVL Renewable Energy Fund I, the recently acquired solar projects are at an advanced stage of development, with grid-connection conditions already approved and construction permits for some of the projects granted. Construction work on the development portfolio is set to start gradually from 1Q23.

Liutkevicius commented: “The appeal of the Romanian market is growing rapidly. We continue to witness the sustained growth of interest from foreign investors for the country’s renewable energy sector. The Fund’s investments in sustainable energy projects are already at a significant level and we continue to actively seek new acquisition targets in the market. The Fund’s solar projects in Romania are nearing the start of construction which subsequently opens up further opportunities for local activity in areas of construction and equipment supply. Growing the Fund’s project portfolio also presents a series of attractive opportunities for potential investors to join the Fund and deploy available capital for positive environmental impact investment activity and to generate attractive returns.”

The INVL Renewable Energy Fund I recently announced an additional fund-raising round which will end in the beginning of November. The Fund has already raised €34.6 million to date. Under existing investment strategy agreements, the Fund is targeting renewable energy projects (onshore wind and utility scale solar farms) within the EU and NATO member states. The Fund currently has a particular focus on Central Eastern European countries, where it sees high growth potential.

The total Fund’s portfolio, including projects in Romania and Poland has now reached a total capacity of nearly 309 MW. The Fund is also considering attractive investment opportunities in the Baltic countries and expects to increase its portfolio of projects under development to 400 MW or more by the end of the year. The Fund will also look to complete all construction works for these projects by the end of 2025.

The Fund’s Managing Partner also notes that renewable energy sources are an efficient and effective way of increasing a country’s energy independence, security, and resilience to commodity price spikes, whilst at the same time reducing the negative environmental impacts of energy generation. Due to the specifics of its electricity production balance, Romania has a real need for new power generation capacity and the government is supporting the roadmap towards the expansion of renewable energy.

Liutkevicius concluded: “Romania, with a population of more than 19 million people, is a rapidly growing market. Romania plans to join the Schengen area in the near future and has started negotiations to join the OECD which will make this region even more attractive for foreign investment. The country’s geographical location and annual hours of sunshine mean its solar parks can be more efficient and produce electricity at a highly competitive market price. The growing demand for new and renewable electricity capacity is attracting further investment and also reducing pollution levels in the process.”

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