Renewables, Wind blows East Rinnovabili, soffia il Vento dell'Est

Renewables, Wind blows East

Wind blows East for renewable energy investments.

Israeli companies are entering Polish renewable energy market. According to Al-monitor, the Israel Infrastructure Fund managed by Yaron Kestenbaum is about to invest 50 million shekels (about $14 Million USD) in the acquisition of 50% of Winergy group, which operates Polish wind farms for electricity production.

Israel Infrastructure Fund is the first private equity fund in Israel. It specializes in asset management in the fields of infrastructures and energy, and manages over a billion dollars. The fund is owned by Harel Insurance Investments & Financial Services Ltd., Adv. Yehuda Raveh, and Yaron Kestenbaum.

The acquisition deal under discussion involves three separate wind farms: the first with a capacity of 20 megawatts (MW) and already active and delivering energy, the second currently under construction with 34 MW ready by end 2014, while the third is still waiting financial closure and is planned to be a 38 MW plant.

The decision of Israeli investors to access the Polish energy market is meaningful. During the last year, electric power production in Poland has gained considerable momentum, significantly expanding, especially when compared to other EU Countries.

Among the Israeli companies operating in Poland in the field of electricity production using renewable energy sources is it possible to mention:

  • Sunflower Sustainable Investments Ltd., controlled by Roni Biram and Gil Deutsch,
  • Enlight, the renewable energy arm of Eurocom Group, which is controlled by Shaul Elovich.

Both of them invested last year in various renewables projects in Poland.

Going further East, according to IBC the solar industry will be the main focus of investment in the renewable energy market of Russia and the CIS region.

In particular, the Russian renewable energy market will be the focus of investors in 2014 due to the power purchase agreement (PPA) model that came into force in 2013, providing bonus investment return for project developers.

An additional factor that will determine more active development of solar energy in comparison with other sectors of renewable energy in 2014 is the requirement of “local content” (presence in a project not less than 50% of Russian components and equipment), which currently only solar segment developers can provide due to the production of PV modules in the Russian Federation.

At the same time, the Russian Federation is still lacking a full production of megawatt-class wind turbines. Promising markets for the development of solar energy in 2014 are also Kazakhstan, Uzbekistan and Belarus due to the environment conditions and the government actions directed to industry support.

In addition, a number of large projects can be implemented in Ukraine, where the mechanism of “green tariff” exists.

IBCentre also predicts:

a rapid growth of the CIS market of engineering services in the field of renewable energy in 2014, which will be formed mainly by experienced foreign players.

According to the IBCentre estimates, the Russian Federation’s engineering industry market in the next year will be worth as €25 million and will increase to €1.2 billion by 2020.

The renewable energy market of the Russian Federation as a whole is estimated at €8.5-10 billion.

Also Azerbaijan seems to be a market to evaluate:

  • CNIM (France), a leading provider of turnkey solutions for the energy and environment sectors, won the EUR 346 million public tender for the design, construction and 20-year operation of a waste-to-energy plant with a capacity of 500,000 tons of municipal solid waste per year in Baku. It is considered to be the biggest waste-to-energy plant in Eastern Europe and CIS countries.
  • Caspian Technology Company (Azerbaijan) is the country’s first company to engage in alternative energy. It launched a Vestas V39-500kW Training Center, several wind and solar power pilot projects and started manufacturing wind turbines and solar panels.

Whoever is interested in understanding more about this market can participate to the This meeting will be held April 8-9, 2014, in Sochi, and will be dedicated to investment opportunities in the solar energy market of Russia and the CIS countries.