Romanian electricity supplier Tinmar Energy and state-owned utility Energy Complex Oltenia have completed procurement for four solar parks with combined capacity of almost 395 MW, clearing the way for engineering, procurement and construction contracts to be signed.
The projects are located in Gorj county and form part of EC Oltenia’s transition from coal-dependent generation towards a more diversified portfolio. They are among Romania’s largest renewable developments structured through cooperation between a private energy company and a state-owned utility.
A consortium led by China Civil Engineering Construction Corporation Romania, together with Spain’s Aeronaval de Construcciones e Instalaciones, has been selected to deliver all four plants.
The portfolio has an estimated investment value of approximately €260 million, equivalent to around €658,000 per MW. This is a competitive capital intensity, although the final figure will depend on grid works, battery capacity, financing costs and whether all owner’s costs are included.
Approximately 70 per cent of the investment is expected to be reimbursed through the EU Modernisation Fund. On the stated budget, that would represent close to €182 million, leaving around €78 million to be financed through shareholder contributions and commercial bank debt.
The high grant component materially changes the projects’ financial profile. At a net capacity factor of 14-17 per cent, the portfolio could generate approximately 485-588 GWh annually. At an achieved electricity price of €55-75/MWh, gross annual revenue would fall in a broad range of €27-44 million.
Operating expenditure for the four sites could be approximately €4-6 million a year, before balancing, land, grid and battery costs. With the grant covering most construction expenditure, a base equity return could exceed 12 per cent, while an upside case combining strong irradiation, controlled EPC costs and favourable market capture could move beyond 16-18 per cent.
These returns remain sensitive to grant compliance and grid delivery. A 12-18 month connection delay could reduce the equity return by approximately 2-4 percentage points, particularly where reimbursement milestones, equipment warranties or debt availability periods expire before commissioning.
Battery energy-storage systems will be integrated with the solar plants, although their capacity has not been disclosed. Appropriate sizing will determine whether the batteries primarily provide grid compliance, reduce curtailment, shift solar output into higher-priced evening hours or participate in balancing markets.
Tinmar and EC Oltenia are also advancing a 475 MW gas-fired power plant with an estimated cost of €489 million, equivalent to just over €1 million per MW. The combination of gas, solar and storage is intended to replace part of EC Oltenia’s coal exposure while maintaining dispatchable capacity.
Completion of procurement removes one development barrier, but the critical path now moves to EPC contract allocation, grid readiness, Modernisation Fund evidence and the interface between solar generation and battery control systems.
