IFC Finances Wind Power Plant in Romania to Reduce GHG Emissions

IFC's loan for Phase 1 includes €21.4 million from IFC's own account and forms part of a larger €291 million financing package involving commercial banks and other lenders.

The International Finance Corporation (IFC) is providing significant long-term debt financing for the Vifor Wind Power Plant in Romania. This 461-megawatt (MW) project aims to enhance Romania's renewable energy supply and contribute to the country's climate commitments and energy transition goals. Developed by Rezolv Energy S.A., a joint venture between global infrastructure investor Actis and renewable energy company Low Carbon, the Vifor Wind Power Plant is being constructed in two phases. Phase 1, with a 192 MW capacity, is currently under construction, while Phase 2, which will add 269 MW, is preparing for construction.

IFC's loan for Phase 1 includes €21.4 million from IFC's own account and forms part of a larger €291 million financing package involving commercial banks and other lenders. This project is notable for being one of Romania's first large-scale greenfield renewable energy projects financed without public support. Once operational, it is expected to reduce Romania's carbon emissions by an estimated 500,000 tons of CO2 equivalent annually, aligning with Romania's goal to cut net greenhouse gas (GHG) emissions by at least 55% by 2030.

Jan Viton, Financing and M&A Director at Rezolv Energy, highlighted the project's significance and the strong interest from financial institutions, expressing hope for future collaborations with IFC. Martin Langham, Managing Director at Low Carbon, emphasized the project's role in decarbonizing Romania's electricity grid and its status as one of Eastern Europe's largest wind projects.

Romania, despite progress in reducing GHG emissions, still relies heavily on fossil fuels, making its emissions intensity 1.4 times higher than the EU average. With the planned phase-out of coal by 2032, an estimated $31.5 billion investment is needed for the energy transition in the power generation and storage sector. The Vifor Wind Power Plant, located near Buzau in southeastern Romania, will also introduce a hybrid energy sales model, combining wholesale market sales and corporate power purchase agreements.

Ary Naïm, IFC Manager for Central and South Europe, stressed the importance of accelerating clean energy deployment in Romania to meet climate commitments. He highlighted IFC's role in demonstrating the bankability of private utility-scale onshore wind projects and supporting the regional energy transition. Romania is IFC's largest country exposure in Europe, with a portfolio of $2.1 billion, making it the 10th largest globally.