Romania is launching the first scheme for contracts for difference and it is very important that it goes very well, so that we can then make new CfD schemes for the other technologies as well, for nuclear, for storage in batteries or offshore wind, said the Minister of Energy, Sebastian Burduja.

“Romania is launching the first scheme for contracts for difference. What does this mean? It means that after some auctions, fixed prices will be determined for 15 years for investors for the sale of electricity. So an investor who wins these competitive auctions will be able to sell electricity at a fixed price for 15 years. Predictability, support for investments and green energy, because this year the auction targets 1,500 megawatts, 1,000 wind, 500 solar and we have another 3,500 megawatts planned for next year, a new auction, where we will see how many will go to wind and how many to solar. At the moment it would be 2,000 solar and 1,500 wind, but we are still discussing next year, depending on how this auction goes”, explained the minister at a conference press organized on the occasion of the event dedicated to the clarifications addressed by the potential beneficiaries of the CfD program, according to Agerpres.

Burduja emphasized that this is a milestone in the PNRR, a commitment of Romania, but also a model practiced by many other states and which works quite simply.

“When the price in the market is higher than the price set after the auction, then the producer returns the difference to the state. When the price is lower, the state compensates the difference and brings the producer and, in fact, the seller of electricity to the set price. We want as much competition as possible tight, as intense as possible. The hall is full today, dozens of investors have come from all over the world and, moreover, Romania is being talked about in many places in terms of the energy sector,” the Minister of Energy said.

At the same time, he added that it is a first scheme for contacts for the difference, but it is a frequently used tool, a form of state aid.

“We are also targeting the nuclear sector. Nuclearelectrica needs such a scheme for the refurbishment of Unit one, but also for reactors three and four, very likely. Also, the part of storage in batteries and pumped storage hydropower plants of the Tarnița-Lăpuşteşti type. And , last but not least, offshore wind, so offshore wind, we will also make a contract scheme for the difference. It is very important that this first auction goes very well, so that we can then capitalize on this moment and make new contract schemes for difference for the other technologies as well”, pointed out Sebastian Burduja.

The order of the Minister of Energy and the annexes related to the state aid scheme in the form of contracts for difference (CfD), intended for the production of electricity from renewable sources, namely onshore wind and solar photovoltaic energy, was published at the beginning of September in the Official Gazette.

Also, the rules of the bidding procedure for the first auction in this program were established.

“We are entering the last hundred meters for the launch of the first tender within the CfD scheme, which will support the development of photovoltaic projects with a capacity of 500 MW and onshore wind projects of 1,000 MW. Investors will benefit from support in the form of a contract for the difference, which will guarantee them a fixed price for the sale of electricity for a period of 15 years.The price will be determined following a competitive auction, with a maximum starting threshold of 78 EUR/MWh for photovoltaic projects and 82 EUR/MWh for those I invite as many investors as possible to participate in this auction and contribute to the transformation of the energy sector in Romania. at a competitive cost. I remind you that Romania is the first country that managed to finance the CfD scheme from the Modernization Fund, obtaining an amount of 3 billion euros for this purpose,” declared Burduja, quoted in a ministry statement.

Submission of offers under this first scheme will take place in mid-November, until mid-December anticipating the evaluation of the offers. The signing of contracts for the first auction is expected to be completed by the end of this year.