The renewable energy projects’ legal framework in Romania was amended several times in the last months, in order to facilitate the construction works for these projects, shows an analysis by PeliPartners.
“The construction works for renewable energy projects have been subject to several amendments to the legal framework applicable to these investments. Thus, the authorities acted by amending the Constructions Law no. 50/1991 and the Land Law no. 18/1991. The top amendments concern allowing the construction of renewable energy projects in extra muros area without the prior approval of an urbanism documentation, including preparatory works such as drilling and excavations works in relation to units which produce electricity and hydrogen from renewable sources. New amendments are on the agenda of the Chamber of Deputies,” explains Mădălina Fildan Răileanu, Senior Associate, PeliPartners.
With respect to the new proposed amendments to the Urbanism Law no. 350/2001, the authorities must operate a correlation with the recently amended Land Law no. 18/1991 and related amendments of the Constructions Law no. 50/1991 in order to avoid a double regulation which may generate confusion.
Law no. 159/2022 amending the Constructions Law no. 50/1991
Law no. 159/2022 entered into force on 30 May 2022 and provides a new exception to the obligation to obtain an urbanism documentation approved by the local authority prior to issuing the building permit. The exception concerns research and land prospecting works, consisting of drilling and excavations, in relation to units which produce electricity and hydrogen from renewable sources.
Law no. 254/2022 amending the Land Law no. 18/1991 and other legal provisions
Pursuant to the amendments brought under Law no. 254/2022, the Land Law no. 18/1991 now allows for renewable energy projects to be located in extra muros area, on agricultural land of maximum 50 hectares having quality category III, IV or V and use category arable land, pasture, vineyard or orchard or land with land enhancement works (e.g. irrigation or drainage capacities).
The renewable energy projects listed under the Land Law no. 18/1991 are: units for production of solar energy, wind energy, energy from biomass, bioliquids and biogas, electricity storage units, transformer stations or other similar systems.
These projects will be developed based on the building permit and the approval of the permanent or temporary removal from the agricultural circuit or the relevant land.
“The agricultural land located in extra muros area on which such projects have been built may be used in a dual system for agricultural production and production of energy from renewable sources, while the removal from the agricultural circuit operates only in relation to the areas occupied by the respective projects. Agricultural lands having the arable category of use are excluded from the dual use system,” explains Mădălina Fildan Răileanu.
In this case, the removal from the agricultural circuit will be made during the permitting procedure, while the correspondent tariff will be owed only for the part of land on which the project shall be located.
Also, by exception from general procedure set under the Land Law no. 18/1991, the removal from agricultural circuit of the land needed for the renewable energy projects presented above shall be approved by decision of the director of county Department for Agriculture, with the endorsement of the Ministry of Agriculture and Rural Development in case the area exceeds 1 hectare. The approval of the Department of Agriculture director as well as the endorsement of the Ministry of Agriculture and Rural Development must be issued within 45 days from receiving the request. Failure to issue a reply within this deadline will be equivalent to tacit approval.
The provisions of Law no. 254/2022 produce effects until 31 December 2026, shows the PeliPartners analysis.
Law no. 21/2023 amending the Constructions Law no. 50/1991
Following the entry into force of Law no. 21/2023 on 13 January 2023, Law no. 50/1991 was amended in order to allow construction of renewable energy projects in extra muros area without the prior approval of an urbanism documentation. The renewable energy projects included in this amendment are the projects detailed under the Land Law no. 18/1991, as amended by Law no. 254/2002, namely constructions specific to the production of electricity from renewable sources, consisting of units for production of solar energy, wind energy, energy from biomass, bioliquids and biogas, electricity storage units, transformer stations or other similar, located on lands with an area of maximum 50 ha.
Law no. 21/2023 solved the controversy created between legal practitioners as to the inconsistency between Law no. 254/2022 and the Constructions Law no. 50/1991.
A new proposal for amending also the Urbanism Law no. 350/2001 as well as the Constructions Law no. 50/1991 was approved by the Romanian Senate in February 2023 and is on the agenda of the Chamber of Deputies. The proposal refers generally to exemption from the requirement of obtaining urbanism documentation for production and storage projects for renewable energy and hydrogen located intra muros or extra muros, including transformer stations and cables and installations for grid connection.
PeliPartners draws attention that a correlation with the recently amended Land Law no. 18/1991 and related amendments of the Constructions Law no. 50/1991 is advisable in order to avoid a double regulation which may generate confusion.
Government Emergency Ordinance no. 173/2022
Government Emergency Ordinance no. 173/2022, entered into force on 12 December 2022, enacted certain facilities regarding the construction of recharging points / stations for electric vehicles. Pursuant to this amendment, the Constructions Law no. 50/1991 now provides that works related to placing and connecting recharging points / stations for electric vehicles may be carried out in the absence of a building permit, subject to obtaining a location endorsement issued by the local public authority and not causing congestion or blockage of pedestrian / road traffic.
