Romania to launch its first auction of renewable energy projects

Green Forum
Romania will launch its first auction of renewable energy projects under a contract-for-difference (CfD) scheme recently approved by the European Commission.  

Energy Minister Sebastian Burduja disclosed that the scheme, with a capped price of €91 per MWh for solar ventures and €93 per MWh for wind initiatives, has been given the nod by the Commission in early March. Burduja anticipates the European Union's Modernisation Fund to endorse the €3 billion initiative by month-end.

Romania stands as a trailblazer, being the first nation to leverage the Modernisation Fund for its CfD program. The blueprint entails two auctions, with the maiden one slated for this year, presenting 2 GW of projects - 1 GW earmarked for onshore wind and an additional 1 GW for solar power. Subsequently, in 2025, the second auction will escalate to 3 GW, evenly distributed between 1.5 GW for onshore wind and 1.5 GW for solar energy ventures.

The CfD mechanism secures a fixed electricity price for 15 years, shielding beneficiaries from market fluctuations. Should electricity rates dip below the agreed threshold, recipients receive compensation, while any excess above the threshold mandates reimbursement to Romanian authorities.

Green Forum  |  20 June, 2024 at 8:04 AM