OMW Petrom will build, in partnership with a Romanian electricity provider, four photovoltaic parks that should increase Romania’s installed solar power capacity by c. 30%. Total investments amount to over EUR 400m, which should be 70% funded through the Modernization Fund.

OMW Petrom, the largest integrated energy company in Southeast Europe, will build in partnership with Romanian electricity provider Complexul Energetic Oltenia, four photovoltaic parks that should increase Romania’s installed solar power capacity by c. 30%. The installed capacity of the four photovoltaic parks will increase the total national installed capacity of solar energy by as much as 30%. Current production stands at 1.4 GW, which should be further boosted by another 450 MW.

The photovoltaic parks will be built in Ișalnița, Tismana, Roșia and Rovinari, on the sites of the former mining operations operated by CE Oltenia. According to current estimates, the parks should supply electricity to the national energy system starting in 2024.

The total investments amount to over EUR 400m, which should c. 70% be financed through the Modernization Fund, the EU program that helps modernize energy systems and improve energy efficiency. The project will be developed through four separate legal entities, in a 50% – 50% equity interest structure. The intention is to sell the produced electricity by these entities to the two partners in equal shares. OMW Petrom did mention in it earlier financial statements the fact that Romania has the highest solar potential in the region and it, consequently, is well placed to benefit from EU funds for investments in photovoltaic power plants.

In yesterday’s trading session, the price share of OMW Petrom increased by 4.1% driven by positive sentiment.

OMW Petrom Share price [RON]