Enel Green Power SpA, a unit of Italy’s biggest utility, agreed on a 200 million-euro ($271 million) loan with the European Investment Bank to help fund wind farms in Romania.
The 15-year loan will partially cover investments in ventures in the Banat and Dobrogea regions of the eastern European nation, Enel Green today said in a website statement. The finance is competitive with the “market benchmark” and is secured by a guarantee issued by Enel SpA, the company said.
Romania plans to get 38 percent of its power from renewables by 2020, up from about 5 percent last year, its national renewable energy action plan shows. Wind and solar capacity has surged in the past year, driven by some of Europe’s highest subsidies.
The government plans to cut support for new clean-energy projects from 2014 and freeze some aid for plants in operation, saying rates are too high.
The loan, agreed by Enel Green Power International BV, has a pre-payment grace period of as much as 2 1/2 years, according to the statement.