Ministry: Romania will launch CfD-based support scheme for green energies in mid-November

Romania will launch its first auction of onshore renewable energy projects by mid-November through a contract-for-difference (CfD) support scheme funded by the European Union, the energy ministry said on Monday.

It said that the scheme would set a strike-price of 78 Euros per Megawatt Hour for solar projects, and 82 Euros for wind.

The long-awaited low carbon energy support scheme will fix the price of electric for providers to an agreed level for a period of 15 years.

After the Ministry reduced the scope of the initial 2 GW auction, the first auction will offer 1,5 gigawatts worth of onshore solar and wind energy projects.

The European Bank for Reconstruction and Development (EBRD), which helped the ministry develop the legal framework for contracts, has lowered the initial prices for the first bid from 91 euros for solar and wind to 93 euros.

The ministry announced in a press release that "offers will be requested by mid-November." The first contract is expected to be signed before the end of the year.

The CfD program will receive 3 billion euros (3,31 billion dollars) from the Modernisation Fund. This is a programme that falls under the European Green Deal and supports 10 EU member states with lower incomes to upgrade their energy systems.

The final tender will cover projects worth 5 GW, and a second one is expected to be held in 2025.

Romania's electricity is generated using a mixture of gas, coal and renewable energy sources. The country has also committed to phase out brown coal (lignite), although the Energy Ministry is seeking a delay.

The Energy Ministry said that Romania will be able to connect 1,373MW of new electricity to the national grid before the end of the year, with the majority of this coming from solar parks.

(source: Reuters)