Romania opens inaugural 1.5-GW CfD renewables auction

Romania has this week launched its first auction under the contract for difference (CfD) mechanism for renewable energy, aiming to support 1.5 GW of capacity, split into 500 MW of solar and 1 GW of onshore wind.

The start of the auction was announced by the energy ministry and Transelectrica, the operator of the CfD scheme, after the ministry approved the scheme in August.

The CfD scheme has a total budget of EUR 3 billion (USD 3.3bn), funded by the EU Modernisation Fund. This budget will support a total of 5 GW of renewable energy projects, with 1.5 GW in this year’s auction and the remaining 3.5 GW in a second auction in 2025.

The two-way CfD scheme will award contracts for 15 years. The maximum prices set for the first auction are EUR 82 per MWh for electricity produced by onshore wind installations and EUR 78 per MWh for electricity produced in photovoltaic solar installations. Bids are due by November 18, 2024.

The effort is supported by the European Bank for Reconstruction and Development (EBRD), which said in a statement that the CfD mechanism advances Romania’s long-term decarbonisation goals. Investment in renewable energy is crucial for meeting the National Energy and Climate Plan’s goal of 34% of renewable energy in gross final energy consumption by 2030. In addition, Romania’s new draft energy strategy targets 44% of gross final energy consumption from low-carbon sources by 2035, the bank noted.

(EUR 1 = USD 1.104)

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