Romania completes second round of renewable energy auctions – third of wind quota unallocated

Companies that participated in the second round of auctions in Romania for contracts for difference (CfDs) for wind and solar power projects received the ranking list. The target quota for photovoltaics was slightly surpassed, with 1.49 GW approved. Conversely, only 1.26 GW was allocated in the wind project segment, against the available 2 GW. Average winning prices were EUR 40.35 per MWh and EUR 73.89 per MWh, respectively.

Winners include Rezolv Energy’s Dama Solar, which at 1.04 GW in total would currently be by far the largest PV system in Europe, excluding Turkey.

Romania’s Ministry of Energy and transmission system operator Transelectrica have conducted the country’s second wind and solar power auctions for government support in the form of CfDs. They imply fixed prices for beneficiaries for 15 years. If the producer sells its electricity in the market at a higher price, the government receives the difference. It works the other way around as well. The average winning price for wind power was EUR 73.89 per MWh, compared to EUR 40.35 per MWh for photovoltaics.

There was 2 GW available for wind power projects, but the authorities selected only 1.26 GW, within 23 qualified projects. It means their bids were lower than the ceiling of EUR 80 per MWh. Romanian media learned most of the details, while the official report is yet to be issued.

Rezolv, OX2, OMV Petrom, among winners in wind power segment

In the wind power auction, the participants secured less than two thirds of the quota. There are 23 projects of 21 companies on the list, with 1.26 GW accepted overall of the available 2 GW.

Midmar Callatis passed with the lowest bid, EUR 65.17 per MWh, for the Dunărea East project in Constanța county. The entity, controlled by Rezolv Energy, is eligible for a CfD for 211.2 MW. It is the largest proposed capacity that participated in the auction. The Dunărea East and West project is for 600 MW altogether.

The firm signed the grid connection contract last year. It expects to complete the wind park in 2030, to meet the deadline, like almost all other auction winners in both segments.

OX2 has split its project and won three contracts

The second winner by size is the Cerchezu wind power project. The owner, OX2, has split it into chunks, so 128 MW, 25.6 MW and 25.6 MW earned entry into the market incentives scheme. The special purpose vehicle (SPV), called South Wind, has bid EUR 69.87 per MWh, EUR 74.5 per MWh and EUR 76.5 per MWh, respectively, for a combined capacity of 179.2 MW.

Coming in third in terms of selected capacity, with 111.6 MW, is the future Poiana wind power project. The developer is Green Labs, which operates under Electrocentrale Borzești, part of the Renovatio group, under OMV Petrom.

Through its project firm CEF Pelicanu, Renovatio also won a CfD for 103.7 MW for its Alexandru Odobescu project. It bid EUR 76.9 per MWh.

Winning prices in second wind power auction higher amid demand drop

Ecoener Carpatica’s Miroslovești project in Iași county can sign a contract for 54.4 MW, at a price of EUR 68.75 per MWh. The Urleasca project passed with EUR 71.93 per MWh for 31 MW.

Eurowind Energy’s Cheap Energy Company was successful with a bid of EUR 78.5 per MWh for the Pecineaga Northeast (Nord Est or NordEst) endeavor. It applied for 48 MW.

Engie Romania passed with its Falcon wind power project

Falcon Wind of Engie Romania secured a CfD for 52.4 MW with a price of EUR 72.7 per MWh. It was the first under the line in the first round, with a bid that was EUR 5 higher. The location is in Mereni in Constanța county.

The accepted prices in the wind power auction are between EUR 65.17 per MWh and EUR 79.5 per MWh, compared to a range of EUR 54.59 per MWh to EUR 77.33 per MWh in the first round.

Accepted bids for solar power projects significantly lower than in first round

Conversely, solar power prices were much lower than last time. They landed at EUR 35.77 per MWh to EUR 45.2 per MWh, against a range of EUR 45.05 per MWh to EUR 54.19 per MWh in December. This time, the ceiling was EUR 73 per MWh. The commission accepted 26 bids of 1.49 GW in total, extending the quota by 16 MW.

The largest capacity, 520 MW, was awarded to special purpose vehicle West Power Investments for its Dama Solar project. It is for 1.04 GW in total peak capacity, which would make it the biggest solar power plant in Europe excluding Turkey. Rezolv Energy developed the project, together with Monsson. It won the incentives through two equal lots, with bids of EUR 42.2 per MWh each, on a rounded basis.

Enery Element gets almost 460 MW for its two PV projects

Other companies also partitioned their projects for the auction. Enery Element won 11 out of the 26 contracts, for its proposed Baboia PV plant, also called Ogrezeni. The bids were between EUR 35.77 per MWh and EUR 42 per MWh.

In the previous round, it failed to make the quota with EUR 56.82 per MWh. The combined capacity is 350.1 MW. According to Economica.net, the developer may have opted for splitting the PV plant to avoid surpassing the 50-hectare threshold per lot. The Ogrezeni project in Giurgiu county is for more than 500 MW overall, the media outlet noted.

The company also succeeded with four lots of its Dumbrava 2 project. Enery Element’s subsidiary Siret Solar Plant has bid EUR 38.76 per MWh to EUR 38.79 per MWh. The combined capacity is 108.6 MW.

Engie Romania is now eligible for a CfD for 170 MW in peak capacity, for its proposed Cornățelu photovoltaic facility. Its bid was the highest on the list, EUR 45.2 per MWh. The site is in Dâmbovița county

Of note, the government has so far signed contracts with 21 firms that won in the first solar and wind power auctions.