In the First Contracts for Difference (CfD) Auction, the Ministry of Energy of Romania will Award 1500 MW (1.5 GW) of Solar Photovoltaic and Wind Projects by the end of 2024
/BUCHAREST, November 6, 2024, 10:00 CET, RENEWABLE MARKET WATCHTM/ Offers for the first auction through Contracts for Difference (CfD) can be submitted until November 18, 2024, provided that additional requests for clarifications received after October 23, 2024, the initial deadline for completing this process, have been completed and already announced by the Ministry of Energy.
Moreover, the Ministry of Energy has published on its website an updated document of 64 pages regarding the questions and answers related to the clarification of the aspects related to participation in the auction process to provide the most relevant information to ensure as much participation as possible in the first CfD auction.
The document includes, among other things, clarifications related to changes to the contract, rules applicable to the applicant, the bidding procedure, guarantees (participation and good execution), CFDs, beneficiary obligations, financial resources and CFD payments. There are also clarifications about legislative changes, the content of the Technical Offer and the Financial Offer, eligibility criteria, limitations of liability and losses, penalties and much more.
“The Ministry of Energy considers the clarification process related to the first auction for the production of electricity from renewable sources of onshore wind and solar photovoltaic power through Contracts for Difference (CfD) to be closed and encourages interested parties to submit offers by November 18”, the institution states. The first auction within the CfD scheme will support the development of photovoltaic projects with a capacity of 500 MW and onshore wind projects of 1,000 MW.
According to the Minister of Energy, Sebastian Burduja, investors will benefit from support in the form of a contract for difference, which will guarantee them a fixed price for the sale of electricity for a period of 15 years. This offers a stable and predictable income stream. The price will be established following a competitive auction, with a maximum starting threshold of EUR 78/MWh for photovoltaic projects and EUR 82/MWh for onshore wind projects.
According to the latest market data, the Romanian solar PV market added more than 1 GW of newly installed capacity and scored a remarkable 308 % increase compared to the previous year's growth. Thus, Romania reached a cumulative solar capacity of 2.9 GW at the end of 2023. Romanian onshore wind power capacity reached 3,100 MW (3.1 GW) at the end 2023. With a 2030 target of 7.6 GW, it will need to build 4.5 GW of new wind capacity over the next few years.
“I invite as many investors as possible to participate in this auction and contribute to the transformation of the energy sector in Romania. The more bidders we have, the more we can accelerate the change necessary to increase energy production capacity from renewable sources to 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, at the beginning of September.
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. This information will allow investors to plan their future investments and understand the long-term opportunities in the renewable energy sector in Romania. 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, said the cited source.
For more information and answers to your questions about the Romanian solar and wind market and related content, you may read here: Romania Solar Photovoltaic (PV) and Wind Power Market Outlooks 2024÷2033
In order to download the executive summary brochure with sample pages, please access from here: Romania Solar Photovoltaic (PV) Power Market Outlook - Sample
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