Transeastern has offered Petrom for the 45 MW Dorobantu Park, a price of nearly 511.000 euros per MW, after investors in wind farms marked capital expenditures of about 1,3-1,5 million euros per MW of installed capacity during the boom period. The 23 million euro transaction is part of the line drawn by Petrom at the beginning of the year, but it is still considered by the specialists as “guilty” for setting a reference price far too low for future transactions.
“It is a very small signal price, unfortunately, three times lower than the initial CAPEX (capital expenditures – e.n.). There are probably other clauses in place, with Petrom being a big consumer of green certificates”, told an expert to energynomics.ro.
According to an OMV Petrom report, the Dorobantu turbines generated last year a net electricity production of 0,08 TWh, at the same level as in 2015. The park received approximately 128.000 green certificates, half being eligible for sale after January 1st, 2018.
“OMV’s decision to sell the Dorobantu wind farm was taken both in the context of the lower revenues that the company obtained from its core business, stemming from the drop in oil quotations, but also from the reduction in the investment support scheme for the wind energy, that affects the whole industry”, specifies Petrom’s annual report from the beginning of the year. According to the report, OMV Petrom estimated the Dorobantu wind farm at a value of 100 million lei (about 22 million euros).
” The strategy of OMV Petrom, an integrated oil and gas group, is to focus on core business.” Specifically, “the Downstream Gas is seeking to strengthen its leadership position in the gas market, maximizing the benefits of the integrated gas and electricity business model and regional expansion. Wind power production does not fit into the company’s strategic directions.” OMV Petrom announced the intention to sell the Dorobantu wind farm in early 2016.
The Dorobantu wind farm is located in South-Eastern Romania and includes 15 Vestas V-90 turbines with a capacity of 3 MW each, a total of 45 MW. Romania’s total installed wind power capacity is currently estimated at 3.000 MW, thus the Dorobantu Park has a share of about 1,5%.
“The transaction will not have a significant impact on OMV Petrom’s financial and operational indicators, given that the operating profit, respectively OMV Petrom Wind Power SRL’s assets represent less than 1% of the corresponding indicators of the OMV Petrom Group, and the electricity production represents almost 3% of the Group’s total electricity production”, also said the Petrom officials.
Who are the buyers of Dorobantu Park
Petrom announced the sale of the Dorobantu wind farm to Transeastern Power, a company listed in Canada but owned 45,7% by Renovatio Group Limited, with energy business mainly in Romania and by the SAI SIRA asset management company with 17,8% of shares, which has under management open mutual funds and closed capital funds on the Romanian market.
Transeastern Power B.V. Is a subsidiary of Transeastern Power Trust, an independent producer of electricity that owns and operates plants that produce electricity from renewable sources (wind, solar and hydro). Transeastern Power had until the deal with Petrom three wind turbines totaling 17 MW and 11 mini-hydro power plants with a total capacity of 5,1 MW and two 16 MW solar parks, all in Romania. Transeastern Power Trust was founded in 2014 and is listed on the TSX Venture Exchange in Canada.
