- EU has given a green signal to Romania’s €3 billion state aid scheme to support renewable energy generation
- The country will use the proceeds from the Modernization Fund to provide aid to onshore wind and solar energy parks
- A total of 5 GW capacity will be supported, to be auctioned as 2 GW in 2024 and 3 GW in 2025
Romania has secured the approval of the European Commission for its €3 billion state aid scheme to support 5 GW onshore wind and solar PV installations under the bloc’s Temporary Crisis and Transition Framework. This is the largest investment for the country’s energy transition, according to the Romanian Ministry of Energy.
Romania will use the proceeds from the Modernization Fund to help commission 3 GW solar PV and 2 GW wind energy parks. This capacity will be auctioned in 2 rounds, one each in 2024 and 2025.
The auction round this year will award 1 GW solar and 1 GW wind energy projects. In 2025, it plans to award the remaining 3 GW divided as 1.5 GW of solar and wind energy each.
State financial support will be provided through 2-way contract for difference (CfD) arrangement where the sale price of the electricity generated will be fixed for 15 years.
The commission explains that strike prices for the Romanian auctions will be determined through the bidding procedures in a pay-as-bid manner. Reference price will be calculated as a monthly output-weighted average of the market price of electricity in the day ahead markets.
“This €3 billion scheme will enable Romania to support the deployment of new solar photovoltaic and onshore wind power plants. The use of contracts for difference provides incentives for the swift rollout of renewable energy sources and prevents overcompensation,” said the commission’s Executive Vice-President in Charge of the Competition Policy, Margrethe Vestager. “This scheme will also contribute to reduce Romania’s dependence on imported fossil fuels, without unduly distorting competition in the Single Market.”
Romania will ensure the grant is completed before December 31, 2025. The country’s Energy Minister Sebastian Burduja stated, “For all Romanians, these investments mean a lower price of electricity in the medium and long term, cleaner air and higher energy production. Last year, after many years, Romania became a net exporter of energy. And we will continue to export, Romania consolidating its status as a regional leader in the energy sector.”
“It is a new PNRR milestone achieved and, by far, the most important support given so far by Romania to green energy production,” added Burduja.
The country had earlier announced plans to launch renewable energy auctions in March 2024, including for self-consumption facilities (see Romania Announces €816 Million Support For Renewables).
Source from Taiyang News
Disclaimer: The information set forth above is provided by Taiyang News independently of Alibaba.com. Alibaba.com makes no representation and warranties as to the quality and reliability of the seller and products.
