OREANDA-NEWS. The European Bank for Reconstruction and Development (EBRD) is continuing to facilitate Romania's transition to a low-carbon economy through the further development of renewable energy resources.

The Bank will provide a senior loan of €49 million towards the construction, commissioning and operation of the 108 MW Crucea North Wind Farm in the Black Sea region of Dobrogea.

Parallel to the Bank's investment, Erste Group will contribute €49 million, 90 per cent of which will be covered by the Danish Export Credit Agency (EKF), while Banca Comerciala Romana (BCR) will provide a €27 million VAT-funding loan facility.

Preliminary construction works on the 36-turbine wind park began late last year and are to be finalised by mid-2015. Once operational, the project will trade both electricity and green certificates on the wholesale electricity trading platform, OPCOM, increasing the depth and liquidity of the Romanian energy market.

This project is expected to reduce CO2 emissions by 140,000 tons per year.

Crucea North Wind Farm is owned by a leading German power producer, STEAG GmbH, and will be its first investment in the electricity generation sector of Romania. STEAG is responsible for the planning, construction and operation of high-efficiency power plants in more than 60 countries across the world.

The total cost of the project is expected to be approximately €200 million.

Foreign business is and will remain an integral part of STEAG's business model and is to be further expanded as a pillar of its corporate strategy. In that context, STEAG is successfully focusing above all on thermal power plants as well as renewable energy sources. Growth markets in Europe, including Poland, Romania and France, are part of the strategy to develop renewables. The focus of STEAG's work is on Wind projects as the 108 MW Crucea North Wind Farm.

“STEAG is very pleased having achieved signing of the Crucea North transaction which represents the first project of the company in Romania and is the result of the first and fruitful cooperation of STEAG with EBRD, EKF and Erste.”, said Michael Baumgartner, CFO STEAG GmbH.

“The EBRD is pleased to be working alongside STEAG as well as its financial partners, Erste Group, BCR and EKF in supporting this important project. Crucea North will promote private investment in Romania's energy sector and help the country meet EU green energy targets,” commented James Hyslop, the EBRD's Director for Romania.

STEAG GmbH has been active in the field of energy generation for more than 75 years. As a company with international operations, STEAG offers its customers integrated solutions in the field of electricity and heat generation and technical services. Core expertise of STEAG includes the design, construction and operation of both large-scale power plants and distributed generating facilities, and the marketing of electricity from its power plant assets. STEAG's generating capacity is based on both fossil fuels and - for over a decade now - renewable energy.