ROMANIA: The founder of Simtel debunks the myth of money going to China when a photovoltaic park is built: “Three quarters of the amount invested actually remains in Romania and the EU”
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Iulian Nedea, one of the founders of Simtel Team, one of the largest installers of photovoltaic systems in Romania, shows that investment in photovoltaic power plants mainly stimulates the local economy, contrary to the general opinion that all the money goes to China.
“Let’s see why it is a myth. In the context of the global transition to renewable energy, photovoltaic parks have become an essential component of the energy strategy. However, there is a perception that such investments mainly favor foreign economies, especially China’s,” Nedea began his demonstration on his Facebook page.
To analyze this hypothesis, we use the cost structure from Simtel Team SA and take as an example a 1 MWp photovoltaic park, with an average budget of 500,000 euros.
“The study refers to a ground-based construction, which is often cheaper than flat roof installation, for corporate clients. Costs can vary between 400,000 and 600,000 euros/MWp, depending on factors such as the quality of the materials used, the size of the project, the complexity of the land, the connection costs, the requirements of the distribution operator.
For this analysis, we took into account an average value of 500,000 euros/MWp, excluding the costs of the connection point, which remains the property of the distributor”, Nedea also wrote (photo).
Here are the data:
“Of the total investment of 500,000 euros, approximately 74% (370,000 euros) is allocated for products and services from Romania and the European Union, including taxes paid to the state. Only 26% (130,000 euros) represents equipment imported from China, such as photovoltaic panels and inverters,” the entrepreneur shows, who also shows that Simtel often uses inverters manufactured in Europe.
“The cost distribution clearly shows that most of the invested funds remain in Romania and the European Union, contributing to the local economy and job creation. Thus, the idea that these projects mainly “enrich” other economies, such as the Chinese one, is erroneous.
Investments in photovoltaic parks not only support the transition to green energy, but also stimulate the local economy, highlighting the multiple benefits that these projects bring to Romania and the European Union”, Nedea concludes.
Romanian technology and engineering company Simtel Team, the self-proclaimed leader of renewable energy in Romania, is majority owned by Iulian Nedea (23.44%), Sergiu Bazarciuc (23.22%) and Radu Vilău (23.2%). The company has a portfolio of 500 MW completed and under development. Out of five photovoltaic panels installed in Romania, one was installed by Simtel.
