Scatec Secures €121M Financing to Build 189.7 MW Solar Portfolio in Romania

The Scatec has reached financial close for a 189.7 MW photovoltaic portfolio in Romania, enabling the company to commence construction on the three-site project. Most of the planned capacity—in which Defic Globe is a minority shareholder—is covered by contracts-for-difference (CfDs).

A financing package led by the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD) and Banca Comercială Română (BCR) — part of the Erste Group — underpins the development of the Romanian solar portfolio. Equinor, the Norwegian energy company, is the largest shareholder in Scatec. Total capital expenditure for the portfolio is EUR 121 million, to be financed through a mix of non-recourse project debt and equity with roughly 70% leverage.

EBRD and the EIB each allocated EUR 34 million to the financing, while BCR committed EUR 17.3 million in long-term lending alongside other financing components. Scatec said it will procure key components representing about 35% of total capex and will assume responsibility for operations, maintenance and asset management. The company reported a target commercial-operation date in the second half of 2027.

“Reaching financial close and starting construction of our first projects in Romania confirms the market’s attractiveness and the strength of the CfD framework,” said Terje Pilskog. “With long-term revenue visibility and a robust financing structure, the projects are well positioned for construction and delivery. We look forward to advancing them with our partner Defic Globe and contributing to Romania’s energy transition.”

Scatec secured 15-year CfD contracts covering 70% of production for two of the three projects under the country’s first auction for such contracts; the remaining output will be sold in the wholesale market. The sites are located in southern Romania: one in the commune of Dobrun commune, Olt County, Romania and another in the commune of Sadova commune, Dolj County, Romania. CfD-backed capacity totals 127.8 MW, with a further 61.9 MW planned to operate under full merchant exposure, according to the EBRD.

Defic Globe — a joint venture owned by YEO Technology (51%) and Emsolt Investments — holds a 35% stake in the portfolio and has been appointed to deliver turnkey engineering, procurement and construction (EPC) services. The project companies are registered as Solar World, RB Solar Energy and Energie Soleil.

Listed on the Oslo Stock Exchange, Scatec now has 6.2 GW of capacity in operation and under construction across five continents.

May 23, 2025

by AEA in News

Equinor resumes New York offshore wind project of 810 MW after stop-work order lifted

Norway’s Equinor is resuming construction on its Empire Wind project off the coast of New York after the federal authorities lifted a stop-work order issued in mid-April. The project’s first phase, the 810 MW Empire Wind 1, is expected to generate electricity equivalent to the needs of 500,000 homes in the US state.

The construction of Empire Wind 1, the first offshore wind project to feed directly into New York’s power grid, began on April 1. However, the United States Department of the Interior, through its Bureau of Ocean Energy Management (BOEM), ordered the work to stop on April 16, pending the completion of a review.

On May 20, Equinor said its subsidiary Empire Offshore Wind has been informed by BOEM that the stop-work order had been lifted, allowing construction activities to resume.

“We appreciate the fact that construction can now resume on Empire Wind, a project which underscores our commitment to deliver energy while supporting local economies and creating jobs,” stated Anders Opedal, President and CEO of Equinor.

Commercial operation is planned for 2027

In a press release, the company majority-owned by the Government of Norway, explained that Empire Offshore Wind aims to be able to execute planned activities in the offshore installation window in 2025 and reach its planned commercial operation date in 2027, adding that the project is currently more than 30% complete.

The project’s second phase is planned to have 1,260 MW in capacity.

Since the early 2000s, the company has invested about USD 60 billion in energy projects in the United States, mainly in oil and gas, and more recently in low-carbon solutions, critical minerals, and renewables, reads the press release.

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May 12, 2025

by AEA in News

Major offshore wind projects shelved in another blow to industry

Investors in offshore wind farms, especially European ones, are facing increasing losses – Ørsted decided to halt its Hornsea 4 project in the United Kingdom, while the United States stopped the construction of Equinor’s Empire Wind 1 facility.

After the energy crisis and the impact of Russia’s invasion of Ukraine, the resulting surge in inflation and the European industry’s weakening competitiveness, the offshore wind sector has suffered another blow from the drastic reversal of energy and climate policy in the United States. The administration of United States President Donald Trump turned against wind power, particularly offshore projects.

Meanwhile, China’s expansion in the sector is looking more and more like the case with solar power, where it has achieved absolute dominance on the global market. It is making it even more difficult for Western wind turbine producers and project developers to remain above water.

Ørsted announced that it is discontinuing its Hornsea 4 project in the United Kingdom “in its current form.” The Denmark-based developer and operator left the possibility of restarting the endeavor later “in a way that is more value-creating.”

The company won a contract for difference (CfD) at an auction in September for the 2.4 GW project, but it still couldn’t keep it afloat – financially, that is.

Hornsea 4 could have become the second-largest facility of its kind off European shores. The CfD is equivalent to GBP 83 per MWh in current prices.

Offshore wind expansion depends on potential returns for investors

Ørsted cited a continued rise in supply chain costs, higher interest rates, and an increase in the risk regarding the timeline. Group President and Chief Executive Officer Rasmus Errboe pointed out that the company made the move “well ahead of the planned final investment decision later this year.” He also mentioned adverse macroeconomic developments.

Breakaway costs are estimated at EUR 469 million to EUR 603 million, Ørsted said. It sees the impact on earnings before interest, tax, depreciation and amortization (EBITDA) at EUR 402 million to EUR 469 million. It includes a writedown of the offshore transmission assets and cancellation fees. The company expects to write down EUR 67 million to EUR 134 million in construction costs.

WindEurope: Costs can go up between bidding in an auction and procuring equipment, and auctions have to be fully indexed to reflect that

“The pause on Hornsea 4 shows how difficult it is to get offshore wind projects over the line. Costs can go up between bidding in an auction and procuring equipment, and auctions have to be fully indexed to reflect that. More broadly, the investors who make projects happen need a return,” WindEurope commented.

The association stressed that governments are responsible for making value achievable. “Then they’ll get the volumes they want,” the statement adds.

Empire Offshore project stopped in middle of construction in US

In probably the most drastic example of the offshore wind industry’s troubles in the US, the federal authorities forced Equinor to stop its Empire Offshore project last month. The Empire Offshore 1 segment, of 810 MW, was in the middle of construction! The Bureau of Ocean Energy Management (BOEM) ordered the halt pending a comprehensive review.

Notably, the Norwegian government-controlled company was developing the project under a contract with the State of New York. It is in a group of 17 US states and Washington DC which this week challenged, at a federal court in Massachusetts, Trump’s executive order on wind power.

At the end of March, Empire Wind had a gross book value of USD 2.5 billion, including South Brooklyn Marine Terminal, Equinor revealed. By that moment it drew USD 1.5 billion from the loan facility for the project.

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