The project will play a significant role in reducing Romania's greenhouse gas (GHG) emissions and bolstering the country's climate commitments and energy transition goals.
 
Developed through a joint venture between Rezolv Energy S.A., the regional energy platform of global infrastructure investor Actis, and global renewable energy company Low Carbon, Vifor is being developed under two phases. Phase 1 starting construction for an installed capacity of 192 megawatts, and Phase 2 for an additional 269 megawatts of incremental capacity, currently preparing for construction. IFC's loan for Phase 1 consists of €21.4 million from IFC's account and is part of a larger €291 million financing package alongside commercial banks and other lenders.
 
The new project will be one of Romania's first large-scale greenfield renewable energy projects financed without public support. Once fully operational, it is expected to reduce the carbon footprint of Romania's energy sector by an estimated 500,000 tons of carbon dioxide equivalent emissions per year, supporting the country's goal of reducing net GHG emissions by at least 55 percent by 2030.
 
While Romania has made progress in reducing GHG emissions, the country still relies heavily on fossil fuels, resulting in an emissions intensity 1.4 times higher than the European Union average. The scheduled 2032 phase-out of coal for electricity generation means an estimated $31.5 billion in investment is needed to facilitate the energy transition in the power generation and storage sector.
 
The wind power plant, to be located near Buzau in southeastern Romania, will also offer a pioneering hybrid energy sales model, combining wholesale electricity market sales and corporate power purchase agreements with commercial and industrial customers and traders.