The year 2021 was a record one for IFC’s investments in Romania, out of the approximately 429 million dollars injected in six projects, over 73% being green projects, said Cristian Nacu, senior country officer for Romania and Moldova, IFC World Bank, at the 9th edition of Energynomics Awards.
“While the World Bank finances the public sector, IFC is the institution that is financing the private sector. IFC’s current portfolio in Romania has reached over 1 billion dollars, of which 56% is green investment, including green mortgages, energy efficiency or renewable energy. Last June, the IFC program spent 429 million dollars on six projects, 73% of which were green projects. IFC has also invested more than 100 million dollars in four regional projects that have a significant component in Romania. This way, the year 2021 was a record year for IFC in Romania,” said Cristian Nacu.
IFC has been one of the first Romanian investors in the energy sector since 2011. ”IFC was one of the pioneers of the first large-scale transaction with renewable resources in wind farms, committing in 2011 about 100 million dollars. Since then, the pace of investment in renewable energy has declined significantly, with government measures reducing the support scheme, diminishing the appetite of investors and financiers. For IFC, the massive presence of state-owned companies in the energy sector is a limitation, because IFC generally finances the private sector,” he added. “We see good potential in stimulating lending to private energy actors, where structural reforms are being implemented in line with the European Union’s energy package. We aim to support key companies in the energy sector to facilitate the energy transition process.”
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The central objective of the World Bank Group’s strategy in the energy sector is to support Romania in its decarbonization efforts by switching to as many renewable sources as possible. “Natural gas, as a transition fuel, may be a viable solution to balance such additional intermittent capacity, but at the same time, a new strategy needs to be created for switching to low-carbon fuels such as biogas or hydrogen. Here we see the role of the World Bank Group in helping to create the legal framework, but also for IFC, to support our clients in financing projects.” In the gas sector, the World Bank is active in the dialogue needed to help increase competition, strengthen a level playing field, introduce new technologies and encourage functioning and fluid markets.
“Another goal is to support Romania in capitalizing on the offshore wind potential of the Black Sea. Romania has enormous potential, of up to 76GW and could take the lead in regional development of the offshore wind sector. The World Bank supports the implementation of a strategy and an offshore wind action plan for Romania, which will be coordinated with the development plans of the green hydrogen industry.”
This year’s edition of Energynomics Awards was supported by Automatica, Axpo, CIS GAZ, Electrica, Electroalfa, Elgeka-Ferfelis, Enevo Group, EximBank, Hidroelectrica, ING Bank, MOL Romania, Nuclearelectrica, Phoenix Contact, Photomate, RENOMIA – Gallagher, Romgaz, SAS Romania, Schneider Electric, Transelectrica, Transgaz, Wiren.
