27 Mar 2024

Premier Energy Aims to Boost Romanian Green Energy Portfolio to 1.5 GW

27 Mar 2024  by reuters   
Bucharest-based energy group Premier Energy aims to boost its renewable energy portfolio by 50% to 1.5 GW over the next two-to-three years, while continuing to invest in neighbouring Moldova, its chief executives said.

The company, owned by Czech investment holding Emma Capital, has 1,000 MW of green projects under ownership, management or in development in Romania, evenly split between wind and solar and across the country.

It built 10 MW of solar power in Moldova last year and is looking to add another 20 MW in 2024. The company, which supplies and distributes energy, is the third largest gas distributor in Romania and the largest electricity supplier and distributor in Moldova.

"The biggest growth is the electricity generation management and supply," Premier Energy's Chief Financial Officer Peter Stohr told Reuters in an interview. "And that will continue to be an area that we focus on in terms of growth."

Romania seeks to lower its carbon emissions to meet European Union (EU) climate goals and to bolster energy security, which has become a more urgent issue since Russia's invasion of Ukraine in February 2022.

As an EU member, Romania has committed to phasing out coal by 2032 and replacing it with gas, nuclear and renewable energy.

Premier Energy's Chief Executive Jose Garza said a lack of long-term power purchasing agreements (PPAs) with commercial consumers was one of the biggest challenges for renewable developers's ability to secure bank financing prior to building.

Premier Energy began operating in Romania over a decade ago and its revenue has grown from 13 million euros ($14.09 million) to roughly 900 million euros in 2023, including through 25 acquisitions.

Asked whether the company was considering a listing on the Bucharest Stock Exchange in the short term, Stohr said: "We're really sort of positive on the growth aspects of the company, so we may look to diversify our financing needs."

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