Romania’s Ministry of Energy has approved the Contracts for Difference (CfD) scheme which seeks to attract 5GW of solar PV and wind capacity by the end of 2025.
Originally expected to be launched last year, the first round of the CfD will instead happen later this year, while the second round will take place in the third quarter of 2025.
This article requires Premium Subscription Basic (FREE) SubscriptionFor the first round of the CfD scheme, Romania will tender 500MW of solar PV, instead of the initially planned 1GW. The second CfD auction will instead seek 2GW of solar PV capacity. The tender seeks projects with a solar PV capacity equal to or greater than 5MW.
The capacity proposed to be installed comprises entirely of new solar PV or wind projects. However projects which started construction on or before 9 March 2023, from 20 July 2022, could be eligible under the CfD scheme – subject to certain conditions – to the extent that these investments were eligible under the previous Temporary Crisis Framework.
Total budget for the two rounds of CfD for solar PV and onshore wind is estimated at €3 billion (US$3.3 billion). The funding comes from Europe’s Modernisation Fund which seeks to help ten member states – among which Romania – modernise their energy systems.
Projects awarded on either round of the scheme will be entitled to receive a CfD payment for a duration of 15 years. Further details regarding the tenders, including the maximum bidding prices and the exact date for the first auction, will be provided at a later date.
The launch of the CfD has been expected for a while now, as covered in a PV Tech Premium article in 2022 that looked at the Romanian’s market emerging solar PV interest in anticipation of the scheme and further expanded last year with a closer look at the Romanian market that is setting itself as an attractive market in Europe.
The document detailing the Contracts for Difference can be accessed here (in Romanian).
