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ANRE approved the Methodology for determining and collecting the contribution related to contracts for difference (CfD)

19 July 2024
Legislation
energynomics

The regulatory committee of ANRE approved in the meeting of 17.07.2024 the Order of the President of ANRE no. 51/2024 for the approval of the Methodology for determining and collecting the contribution related to contracts for difference (CfD). The methodology was developed based on the provisions of art. 7 lit. d) point (i) and art. 12 para. (3) from Government Decision no. 318/2024 on the approval of the general framework for the implementation and operation of the support mechanism through contracts for difference for low-carbon technologies, according to Financialintelligence. In order to apply the support mechanism through contracts for the difference for energy production through technologies with low carbon emissions, the necessary funds are constituted by the monthly collection by the CfD Counterparty of the CfD contribution from:

  1. a) electricity suppliers active on the retail electricity market in Romania;
  2. b) electricity producers for the electricity consumed from their own production at their own places of consumption and for which they owe the tariff for the distribution/transportation service;
  3. c) energy producers for the electricity supplied to consumers connected to the power plant busbars and for which the tariff for the distribution/transportation service is due.

The methodology establishes:

  1. a) the process of determining the CfD contribution to be collected by the CfD counterparty, according to the legal provisions;
  2. b) the method of determining the annual costs borne by the CfD Counterparty and the CfD Scheme Operator for the performance of their administrative tasks;
  3. c) the data collection process necessary for the approval of the CfD contribution;
  4. d) the way to review the CfD contribution.

The socio-economic impact of the order approved by ANRE on the energy market as a whole is a positive one, considering the goal pursued, namely favoring the development of new production capacities, as well as contributing both to the increase in energy production from renewable sources and to reducing emissions through the use of viable and low-carbon technologies.

Through this methodology, the regulatory framework for the commissioning of approx. 5000 MW of production capacity, in the period 2024-2025 and beyond, and these new assets will increase competition on the electricity market, which could generate a reduction in the price of electricity.

The impact on economic operators is also a positive one, taking into account the fact that they can benefit from a state aid mechanism established by concluding contracts for difference (CfD) carried out through the direct tender process.

 

 

 

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