Copenhagen Infrastructure Partners (CIP) has secured a CfD contract for 245 MW of the total capacity of the Romanian wind project Pestera II. At the same time, the European Investment Bank (EIB) is investing 30 million euros in the project, which will be one of Romania's largest wind projects. CIP writes in a press release.
A Contract for Difference (CfD) is an agreement that secures a fixed price for the electricity from an energy project over a given period. If the market price is lower, the difference is covered by the state or another contracting party, and if the market price is higher, the producer must pay the difference back. The model creates investment certainty and facilitates the financing of large renewable energy projects.
The Pestera II project, with a total capacity of up to 396 MW, was awarded the CfD contract after successfully participating in Romania's first CfD auction in November 2024. The contract runs for up to 15 years from commissioning and is priced at EUR 64.9 per MWh. The total investment in the project amounts to approximately EUR 500 million.
- The Pestera II project has secured a contract in the first CfD auction, which has provided the necessary investor certainty to attract capital for the construction of a significant amount of new renewable energy capacity. We expect Pestera II and the other projects under the CfD scheme to deliver long-term, affordable energy that strengthens Romania’s energy independence and supports the country’s CO2 reduction goals,” says CIP Partner Radu Gruescu.
According to CIP, construction work is expected to start later this year. At the same time, the company estimates that the project will help expand the company’s presence in Romania’s energy sector.
The EIB also sees the investment as an important contribution to the European green transition.
- The European Investment Bank is proud to support Romania’s green transition through our investment of 30 million euros in the Pestera II project. This flagship initiative not only strengthens Romania’s renewable energy capacity, but also contributes to the EU’s ambitious climate goals, said EIB Vice-President Ioannis Tsakiris.
Romania’s CfD scheme aims to deploy 3 GW of new onshore wind and 2 GW of solar power through auctions in 2024 and 2025. The programme is supported by €3 billion from the EU’s Modernisation Fund.
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