VLA, a Europe-focused clean energy company, is poised to develop a multi-gigawatt renewables pipeline in Romania totalling approximately 1.2 GWp of capacity.
VLA specialises in the development of large-scale greenfield solar power plants and the company has a number of projects currently in the advanced stages of development that it intends to launch in Romania’s energy market in the coming months.
Andrei Arniceru, founder of VLA, spoke to Clean Energy Pipeline in an exclusive interview about why the company has ramped up efforts to develop an ambitious 1.2 GWp pipeline of renewable energy projects, as well as upcoming plans to partner with corporate offtakers and international investors to support its green ambitions.
“[VLA’s] primary goal is to bring renewable energy projects to the ready-to-build stage, ensuring they are bankable and ready for construction,” said Arniceru.
“By focusing exclusively on greenfield developments, we prioritise the implementation of sustainable energy solutions from the ground up.
“VLA’s current pipeline of around 1.2 GWp will contribute significantly to reach by 2030 renewable energy consumption target of Romania up to 34% accordingly to EU’s recommendation and to achieve carbon neutrality by 2050.”
The VLA team is currently working on a number of assets in its near-term pipeline and the company remains on track to secure the necessary approvals needed to bring the projects into the construction-ready stage.
“VLA has at this moment three projects located in the South-West part of Romania with capacity of 200 MWp in very advanced level of development, at the last phase to obtain Building Permit,” Arniceru revealed.
Romania’s promising renewables market
Romania has emerged as ‘one of the most promising markets’ for renewable energy in Europe with regards to the current legal and regulatory framework, according to Arniceru, and the accelerated deployment of green energy facilities should remain a top priority for policymakers if Romania is to achieve decarbonisation by 2050.
According to the Romanian National Energy Regulatory Authority (ANRE), Romania’s total installed power capacity amounted to over 18.9 GW as of H1 2023, with approximately 4.45 GW of that amount attributable to onshore wind and solar PV projects.
The introduction of the Government Emergency Ordinance GEO143/2021 on 31 December 2021, after pressure from the EU commission, has been relatively successful in sparking a new wave of projects in Romania, with main features of the law including: changes to the rules on granting licenses and permits, a repeal of restrictions on PPAs, a repeal of legislative provisions that deal with the regulated electricity market, as well as other amendments facilitating investment in the sector and clarifying certain rules.
Romania has also taken steps to introduce a new regulatory framework for Contracts for Difference (CfDs), involving hedging contracts that last for six-10 years in which the producer agrees to a strike price with OPCOM (with a state guarantee).
“Romania is a major recipient of EU funds, including the Modernisation fund and the Recovery and Resilience facility,” continued Arniceru.
“These funds will support investment in renewable energy. [As a result] banks are reasonably active in supporting the renewable energy sector in Romania. Some banks are willing to finance projects on a merchant finance basis (without power purchase agreements), although some may soon change their policy on this.
“As international players enter the market, their parent companies are often able to provide guarantees to special purpose vehicles (SPVs). Loan maturities typically extend up to 10 years.”
VLA welcomes energy storage move
VLA also pointed to the ‘pivotal role’ that energy storage will play in transitioning Romania solar energy, in addition to boosting the overall efficiency and effectiveness of VLA’s solar development projects.
Energy storage as an asset class has reached new levels of maturity across Europe and the technology has attracted significant levels of investment over the past year when co-located with solar power.
Romania’s energy storage market remains relatively nascent but Arniceru is confident that new regulations in the country will spur on further interest in the technology.
“Technical regulations for energy storage were published in January 2023,” explained Arniceru.
“These regulations facilitate investment in the sector, as storage can be added to a solar project after an ATR (grid connection permit) has been obtained.
“Besides being an important flexibility solution, energy storage can reduce price fluctuations.
“Energy storage is playing a significant role in VLA’s solar development projects. By integrating energy storage systems with solar installations, VLA mitigates the intermittency of solar power generation and provide a more reliable and consistent electricity supply.”
VLA’s move towards energy storage is aimed enhancing grid stability, improving energy management, and should help enable its partners to participate in various grid services, such as peak shaving and frequency regulation, while further providing flexibility and optimisation opportunities for renewable energy integration.
VLA’s solar pipeline
“VLA’s current pipeline is consisting of 1,200 MWp of solar projects,” concluded Arniceru.
“We are excited about the potential these projects hold and are committed to bringing them to fruition.
“With our strong pipeline and unwavering dedication to innovation, VLA is poised to make a significant contribution towards a greener, more sustainable future for Europe and the world.”
Founded in 2020, VLA specialises in the development of utility-scale greenfield solar PV power plants and is actively working with companies around the world to deliver a growing renewables portfolio to support Europe’s net zero transition.
VLA’s team of experts aim to bring their knowledge across all phases of the development and operation of solar energy to the wider clean energy market.
For more information, please contact:
Phone: +40 317 107 110
Email: [email protected]
Website: http://vla.energy
Contact person: Andrei ARNICERU Phone: +40 784 609 342
Email: [email protected]