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CEZ Reduces Romanian Wind Capacity Plan on Incentives, Temelin

CEZ AS (CEZ) reduced its plan to build new wind farms in Romania by two thirds, citing uncertainty over the country’s renewables incentive scheme and higher funding needs for projects in the Czech Republic.

The Prague-based power producer plans to build as much as 300 megawatts of wind farms by 2016 in Romania, compared with a previous plan of about 1,000 megawatts, Jan Veskrna, who heads CEZ’s local unit, said in an interview in Bucharest today.

“We only reduced the capacity, but the timeframe remains the same” by 2016, Veskrna said. This reduction “comes not only from the debate on the incentives scheme, but also from our shareholder because of the decision to favor” the Temelin nuclear plant project in the Czech Republic.

CEZ finished a 600-megawatt wind farm project in Fantanele and Cogealac in eastern Romania near the Black Sea coast, the biggest onshore wind farm in Europe, last year to benefit from a renewables incentive scheme in the country.

Romania will scale back renewable-power subsidies to limit electricity-price increases for consumers by changing its incentive program in July or at the beginning of next year, Minister-Delegate for Energy Constantin Nita said in an interview in Bucharest today. It intends to cut the maximum value of so-called green certificates granted for clean-energy generation, he said.

“We have a project of the size of 240 megawatts,” which is pending approval from the Prague headquarters, Veskrna said. “Prague is waiting now to see the result of the debate on the incentives scheme. If it will be something dramatic, I think it will definitely affect the decision.”

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

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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