Romania ranks 13th in Ernst & Young’s top that measures the market attractiveness for investments in renewable energy projects in 40 countries, maintaining the same position as in 2012. Renewable Energy Country Attractiveness Indices, which covers the period between December 2012 and February 2013, places Romania ahead of countries like Poland, Turkey, Spain and Austria.
The report also presents investment attractiveness depending on the type of renewable sources targeted. Therefore, Romania ranks 10th in the top for wind power - same as in the previous edition of the report in November 2012 – close behind big economic powers like Germany, China, U.S., UK and France.
Regarding solar energy, Romania is situated the second part of the rank, in the 24th position, but ahead of Poland and Bulgaria. Ernst & Young notes, however, that this market is very active in Romania, which indicates substantial growth projections in 2013 for solar power installed capacity. These projections are also supported by an advanced degree of development of these projects, an easier approval process than for other forms of renewable energy, a shorter development time, but especially the more convenient model that supports investment in solar energy than in other forms of renewable energy. EDP Renovaveis, the renewable energy division of EDP, is already developing solar energy projects in Romania, with a combined capacity of 39MW, scheduled to be completed in the first quarter of 2013. These are the first solar projects of EDP group. Also, RCS & RDS has made two acquisitions in solar energy, the total capacity of the undertaken projects being 13.7 MW.
The enthusiasm in the solar segment was still slightly tempered by some discussion about changing the incentive scheme:
"Because of discussions in the market about the possible modification of the scheme supporting renewable energy projects, the development of the projects has been slowed to some extent. If this uncertainty should be resolved positively, surely investors would be more inclined to invest in wind and solar projects in Romania. For now, we enjoy the attention of investors from Western Europe, China, the United States, but also of investors in the region, such as Turkey." said Florin Vasilica, Partner and Head of Transaction Advisory Services, Ernst & Young Romania.
The Ernst & Young Index analyzes quarterly 40 of the most attractive countries in the world regarding the domestic renewable energy market, infrastructure and their compatibility with individual technologies. The latest report, released today, shows the growing public pressure on subsidies that promote the development of renewable energy projects. The Ernst & Young report also discusses renewable energy projects in the context of the momentum gained by mining shale gas projects, which many industry players see as having the potential to distract investors from renewable energy.