Independent renewable energy producer Rezolv Energy and Low Carbon, through their project subsidiary First Looks Solutions, have secured finance loan facilities of up to 291 million euros to support the Phase 1 construction of the VIFOR wind farm, a major project located in Romania.
The financing received resounding support from the financing community. The consortium of eight lenders was led by Erste Group, UniCredit Group and the European Bank for Reconstruction and Development, as well as the International Finance Corporation (IFC), Intesa Sanpaolo Group, OTP Bank, Raiffeisen Bank International and Garanti BBVA Romania.
“Erste Group is proud to partner with Rezolv Energy and Low Carbon on this important energy transition project,” commented Wolfgang Hargassner, Head of Corporate Finance at Erste Group. “Erste Group is firmly dedicated to investing in CEE’s sustainable development and to fostering the region’s financial health. The VIFOR wind park represents a noteworthy contribution to Romania’s green energy transition and is also significant for the wider region. Together with our clients, we will continue supporting the transition to greener energy across our core markets.”
This landmark transaction is the first financing for Rezolv Energy, which was launched 18 months ago by Actis, a leading global investor in sustainable infrastructure, to build a multi-gigawatt portfolio of onshore wind and solar parks in Central and Southeastern Europe.
Phase 1 of the VIFOR project will install 192 megawatts (MW) in capacity underpinned by five landmark commercial power purchase agreements (PPAs). Construction is scheduled to be completed within 18 months, with the wind farm coming onstream before the end of 2025. A planned expansion to 461 MW will take place in Phase 2.
Once fully operational, VIFOR, which is located in Buzău County, north-east of Bucharest, will be one of Europe’s largest onshore wind farms. Close to the Carpathian Mountains and benefiting from exceptional wind yields, the project will generate enough clean energy to power more than 270,000 homes and will avoid approximately 540,000 tonnes of CO2e annually. The project will support Romania in meeting its climate targets and play an important role in the region’s energy transition.
In addition to the environmental benefits, VIFOR will create local jobs both during construction and operation, deliver economic benefits to the local community and support community initiatives in Buzău County aimed at ensuring that the project leaves a lasting, positive legacy for local people.
“We are delighted to have secured this support from such a prestigious group of supranational lending partners, regional commercial lenders and local banks,” said Alastair Hammond, CEO of Rezolv Energy. “Their support is recognition of the vital role of large-scale projects like VIFOR in the energy transition in Southeastern Europe. They are also a response to our sustainability strategy, which is designed to ensure that we set a standard for the responsible development of renewable energy projects in this region which others will be inspired to follow. That was an important factor for all of the banks.”
Rezolv already has well over 2 gigawatts (GW) of clean energy being prepared for construction in Southeastern Europe. As well as the VIFOR wind farm, projects include Dama Solar in western Romania which, at 1,044 MW, will be the largest solar plant anywhere in Europe once it is built, the 600 MW Dunarea East & West Wind Farms in Romania’s Constanța County and St. George, a 229 MW solar project in north-eastern Bulgaria.