The Ministry of Energy managed, after delays of several weeks, to finalize the methodology for applying the green energy subsidy scheme through Contracts for Difference (n.r. CfD – Contracts for Difference -en.). Thus, the auctions will have a maximum starting threshold of 78 euro/MWh for photovoltaic projects and 82 euro/MWh for onshore wind projects, according to the Order of the Minister of Energy and related annexes, published in the Official Gazette.
Several investors, especially in solar but also wind energy, previously told Energynomics that the scheme is very attractive and that they will “target” a benchmark price of 60-70 euro/MWh.
The rules of the bidding procedure for the first auction in this program were also established by the Ministry’s Order.
“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 onshore wind projects. 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 the Minister of Energy, Sebastian Burduja, in a statement.
The Ministry of Energy will announce the next steps during the first auctions, not before organizing an investor information session. Submission of offers will take place in mid-November, until mid-December anticipating the evaluation of the offers.
A second auction, which will cover a total capacity of 3,500 MW from onshore wind and photovoltaic projects, is scheduled for launch next year. These measures will contribute to increasing and strengthening Romania’s capacity to produce energy from renewable sources, bringing major benefits to the economy and citizens, as well as ensuring energy security and price competitiveness.
The signing of the contracts for the first auction is expected to be completed by the end of this year.
