EON Plans Wind-Energy Growth in Romania to Reap State Incentive

EON SE (EOAN), Germany’s biggest utility, plans to build at least 100 megawatts of wind power in Romania by the end of 2014 to take advantage of government support for clean energy.

The expansion may reach as much as 300 megawatts should Romania maintain a sufficient level of incentives, Frank Hajdinjak, chief executive officer of EON’s local unit, said today in Bucharest.

Romania is seeking to attract about 5 billion euros ($6.6 billion) in energy investments through 2020 to meet rising power demand without adding to emissions. Even so, the government may rein in support for renewables, joining Spain, France, Italy and the U.K. in curtailing aid to avoid overcompensating companies.

The eastern European country, which offers two so-called green certificates for each megawatt-hour generated from wind, may limit their maximum value and cut the number given out, Minister Delegate for Energy Constantin Nita told Bursa newspaper yesterday. Romania has about 1,600 megawatts of installed wind capacity, according to data from the regulator.

“We have to wait for the final board decision on our investment plan as it depends very much on how much we can develop,” Hajdinjak said in an interview. “The cost for a megawatt is around 1.6 million euros.”

Hajdinjak said last May that EON would decide whether to continue developing wind projects in Romania or sell them.

To contact the reporters on this story: Andra Timu in Bucharest at atimu@bloomberg.net;

To contact the reporter on this story: Irina Savu in Bucharest at isavu@bloomberg.net

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