The evaluation of the financial offers submitted by participants in the first Contracts for Difference (CFD) auction has been completed, the Ministry of Energy reports, specifying that contracts for over 1,500 MW of new green energy production capacities have been awarded, according to a press release from the Ministry of Energy.
“We had a significant number of participants, and the resulting prices are very competitive, 20-30% below maximum prices. All our expectations regarding the success of this first auction have been exceeded, which confirms the confidence that investors have in Romania and in the future of our energy system,” said Sebastian Burduja, Minister of Energy.
Following the first tender for the State Aid Scheme in the form of Contracts for Difference for the production of electricity from renewable sources of onshore wind and solar photovoltaic energy, on 12.12.2024 the financial evaluation of the submitted offers was completed. Out of a total of 48 offers submitted for both technologies, 47 were declared eligible to enter the financial evaluation stage. The total offered for onshore wind was 1,196 MW, respectively 1,615 MW photovoltaic.
“The successful completion of the first round of the CFD tender is a promise fulfilled for my mandate at the Ministry of Energy, but also a multiple premiere: the first tender of this kind in Romania and the first scheme for CFD contracts financed from the Modernization Fund at European level. What do these contracts mean? A fixed price for the electricity produced in the new capacities, for 15 years, a price set competitively, through a public auction.
“I am very happy because we had a significant number of participants, and the resulting prices are very competitive, 20-30% below the maximum prices. All our expectations regarding the success of this first auction were exceeded, which confirms the confidence that investors have in Romania and in the future of our energy system. This financial support mechanism helps stimulate investments in renewable energy projects, reducing financial risks for investors and providing long-term predictability.
“This is just the beginning, because new CFD auctions will be organized next year: another 3500MW for solar and wind parks, but also a completely new scheme for storage capacities. The success of this first round confirms that it is a correct solution, appreciated by investors, and that meets their expectations”, Sebastian Burduja also declared.
Following the evaluation of the financial offers, 21 applicants will be declared winners, namely 11 applicants for solar photovoltaics, totaling a total capacity of 432 MW and 10 applicants for onshore wind with a total capacity of 1,096 MW. Thus, the cumulation of the capacities declared winners – 1,528 MW – will allow reaching the threshold assumed by the PNRR for signing contracts for difference for the production of energy from renewable sources of 1,500 MW.
Following the analysis of the declared winning offers, the following weighted average estimated exercise prices for the first round of CfDs resulted:
- electricity production from onshore wind sources: 65 EUR/MWh;
- electricity production from solar photovoltaic sources: 51 EUR/MWh.
We note that the minimum and maximum strike prices offered and declared winners for each technology were as follows:
- electricity production from onshore wind sources: maximum – 77.33 EUR/MWh, respectively minimum – 54.49 EUR/MWh;
- electricity production from solar photovoltaic sources: maximum – 54.18 EUR/MWh, respectively minimum – 45.05 EUR/MWh.
Each of the bidders declared winners will sign contracts for difference at the offered strike price. Details regarding the prices offered by the participants will be available on the website of the Ministry of Energy, in the Contracts for Difference section.