EC clears EUR-3bn scheme for solar, wind CfD tenders in Romania

Romania has received the green light from the European Commission (EC) to launch a EUR-3-billion (USD 3.27bn) state aid programme to promote the deployment of wind and solar photovoltaic (PV) capacity to meet its energy transition goals.

The scheme will support companies eager to produce electricity from new onshore wind and solar parks. They will be able to receive grant financing for their projects by taking part in auctions for two-way contracts for difference (CfDs).

The first edition, which was supposed to be conducted in the autumn of 2023 but got delayed because of the prolonged clearance process, will target 1 GW of onshore wind capacity and 1 GW of solar capacity and will provide backing under 15-year power purchase agreements (PPAs). The round will be held as part of a wider plan to award CfDs to 10 GW of wind and solar capacity by 2030.

The EC has determined that the scheme aligns with the conditions set out in the Temporary Crisis and Transition Framework, under which it was filed for approval. The aid to be disbursed under its terms will be granted by end-December 2025.

The CfD support mechanism will guarantee a minimum level of return to project owners. Its bidding process will set a strike price, while the reference price will be calculated as a monthly output-weighted average of the market price of electricity in the day ahead markets. The programme is aligned with Romania’s Recovery and Resilience Plan and will be assisted by European Bank for Reconstruction and Development (EBRD).

A second CfD tender round is planned for 2025 that will target 1.5 GW of wind and solar each.

(EUR 1.0 = USD 1.089)

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