The INVL Renewable Energy Fund 1, managed by Lithuanian asset manager INVL Asset Management, is investing approximately €120m to develop solar farms it has acquired in Romania totalling 166MW.
Under agreements that have been signed, the fund has acquired two companies that are developing the solar plants.
The projects are expected to be operational in 2024.
INVL Renewable Energy Fund 1 managing partner Liudas Liutkevicius said: “We are growing and diversifying the geography of the portfolio.
“Romania is a very rapidly developing and promising European Union market which is giving increasing attention to green projects.
“We see huge potential in this market for developing renewable energy projects and we believe that these investments of ours will not only reduce pollution of the environment but will also allow us to earn an attractive return for investors.
“We constantly monitor electricity markets in EU countries and evaluate varied investment opportunities.
“We have been watching the Romanian market since the fund’s inception, but only went into action after the state amended electricity legislation to allow the development of power generation facilities on the basis of power purchase agreements, or PPAs.
“The Romanian market is attractive for its geographical location and annual hours of sunlight – that makes it possible to achieve about 20% higher solar power plant efficiency comparing to Poland and increase the competitiveness of the electricity price in the market.
“The changed legislative environment will no doubt attract big investments to the renewable energy sector and enable Romania to address structural challenges related to its electricity production balance and energy independence.”
The fund’s portfolio now includes development projects for more than 200MW of solar farms.
All the projects already have conditions for grid connection.
Construction will take place in 2023-2025.