Romania issues call for additional wind power auction for 290 MW

Wind farm project developers in Romania can bid by November 24 for state aid in the form of contracts for difference (CfDs). The call was issued for an additional auction, for 290 MW, after the regular round was completed with more than a third of the quota remaining unallocated.

The Ministry of Energy of Romania and transmission system operator Transelectrica formally launched their third auction today under the CfD state aid scheme for renewable energy. The additional round is only for wind power projects.

Only 1.26 GW was allocated of the available 2 GW in the second, regular auction. It was held within a EUR 3 billion renewable energy program under the European Union’s Modernisation Fund and Romania’s National Recovery and Resilience Plan (NRRP or PNRR).

Aurora Energy Research has interpreted the lack of interest as an indication that developers may have seen more value outside the CfD framework: in power purchase agreements (PPAs) and merchant options. The firm recently said it expected strike prices near the EUR 80 per MWh ceiling.

Financial offers will be opened on December 2, the calendar shows

The maximum price is the same as the last time. Notably, the quota for the additional auction is just 290 MW. Developers have until November 24 to apply with projects of at least 5 MW each. In addition to the bid, they need to submit a technical offer proving eligibility.

Transelectrica, the CfD scheme operator, is due to open the technical offers on November 17. Financial offers of the qualified applicants will be opened on December 2, according to the schedule. The winners would need to sign their contracts for difference by December 18.

The CfDs are for a 15-year period. When the market price of electricity is lower than the price in the contract, the government pays the private operator the difference for the electricity that the beneficiary sells. When it’s the other way around, the producer returns the difference.