Romania is seen as “a great opportunistic context” by speculative investors and by those strategically interested in the area of renewable energies, and no investor is worried about the effects of the war in Ukraine on the industry.
“Money is the last problem in the development of a renewable energy project. Among those from the international investment environment who reviewed projects in Romania, none raised the issue of the war as a condition that would prevent the investment”, said Radu Mustață, Sales Director at Marsh Romania, at the conference “More renewables for Romania”, organized by Energynomics.
Investors’ appetite for green energy projects in Romania is much higher compared to the first wave, ten years ago. All these investors consider Romania as a “great opportunistic context” and analyze the possibility of investing in Romania in the long term to the detriment of other countries in which they operate.
According to Mustață, the balancing market is seen as a risk by many investors, but also an opportunity. “The balancing market offers great investment opportunities and storage is an important element, but so is also fast-start gas capacity. They need to be hydrogen-ready so they don’t turn into stranded assets in less than five years,” he said.
Natural gas is an element of transition and it remains a very good investment opportunity, especially for investors from the Middle East, who “are very interested” in this sector in Romania.
At the same time, some investors are more interested in the balancing market than in investing in new renewable energy generation capacity per se.
“Investors from the Middle East are looking at the gas area, they see gas as a long-term bet regardless of what the European Commission thinks. We have aggressive investors who consider the balancing zone in Romania a much bigger opportunity than the energy itself”, stated Mustață.
But all investors have an appetite for those projects in Romania that offer guarantees and safety. For example, most of the ready-to-build projects that develop in Romania and are proposed for sale come with a “whole series of risks related to property titles”; introducing security measures through insurance services can prevent part of these risks.
“From construction to commissioning, insurance becomes the backbone of an investment, because any kind of investor will want to make sure that its investment is safe. A lot can happen during the construction period”, said Mustață.
The conference “More renewables for Romania” was organized by Energynomics with the support of our partners among which ABB, ACE Industrial Software, BCR, Consolight, Eaton Electric, Elektra Renewable Support, EnergoPower, European Energy, Finder, Geminox, Huawei, ING Bank, LAPP Romania, Marsh & McLennan Companies, Phoenix Contact, Photomate, Prime Batteries Technology, REI Grup, Renomia-Gallagher, Valmont, Volt, Wiren România, Wise Finance Solutions.