German company N-Vision Energy said it plans to build a 100MW wind farm in Bulgaria.

The wind energy park near Kyustendil town, 68km south of the capital Sofia, is estimated to cost US$210.5m (€140m) and will commence operation by the end of 2011, N-Vision managing director Sebastian Noethlichs said.

Up to 75% of the wind farm will be debt-financed with the European Bank for Reconstruction and Development and export credit agencies expected to provide funds, reports Reuters.

N-Vision’s project will be the second largest in the Balkan nation after AES’s recently built a 156MW park close to Kavarna town on the northern Black Sea coast.

Bulgaria aims to increase its renewable energy share to 16% by the year 2020, as part of the European Union’s efforts to tackle climate change.