Romania declares winners of its wind, solar power CfD auctions

Wind and solar power projects with a combined capacity over 1.5 GW in Romania are eligible for subsidies under a contract-for-difference (CfD) scheme. The first round of auctions resulted with ten and eleven winning bids, respectively. The weighted average of accepted wind power prices is EUR 65 per MWh, compared to EUR 51 per MWh for photovoltaics.

Officials in Romania are hoping that the EUR 3 billion approved from the European Union’s Modernisation Fund will cover the costs of the new 15-year CfD mechanism for solar and wind power. Still, consumers will need to bear administrative and electricity transmission expenses. After years of delays, the Ministry of Energy finally selected projects of an overall 1.53 GW, slightly more than the quota, in the first round of auctions,

The remainder from the 5 GW auction plan is slated for next year, Minister Sebastian Burduja confirmed.

Lowest accepted bids are EUR 54.49 per MWh for wind power, EUR 45.05 per MWh for PV

Ten proposed investments in wind power got the green light, amounting to 1.1 GW, out of 1.2 GW in total bids. Two projects landed below the line. Bids ranged between EUR 54.49 per MWh and EUR 77.33 per MWh, against a ceiling of EUR 82 per MWh.

The weighted average came in at EUR 65 per MWh.

Weighted averages for wind and solar power came in at EUR 65 per MWh and EUR 51 per MWh, respectively

A total of photovoltaic 11 units for an overall 432 MW were approved, at prices between EUR 45.05 per MWh and EUR 54.18 per MWh. The average is EUR 51 per MWh. The maximum allowed bid amounted to EUR 78 per MWh.

There were 35 PV projects in the ring, with a combined planned capacity of 1.62 GW.

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

Most winners are foreign green energy companies

The vast majority of project firms that won at the auctions are owned by foreign companies specializing in green energy, Profit.ro reported. At the same time, the list shows multinationals such as OMV Petrom, Engie and Public Power Corp. ended up above the quota.

Only two firms with majority Romanian capital are winners.

The largest wind power project, Peștera 2, is for 245 MW. The main co-owners of the developer, Radramo Power, are Marius Felician Gherasim (40%), Ion Rusei (20%) and Cyprus-based RNV Trade Mark Co. Ltd (20%). The contract price is EUR 64.9 per MWh.

The second-biggest winner is called BuzăuRe and its developer, First Look Solution, is ultimately owned by Rezolv Energy, the article adds. The 240 MW project is getting a CfD with the lowest price, EUR 54.49

Renovatio Group owns 30% of the firm Gura Ialomiței Solar, developing the Gurbanesti wind farm project of 125 MW. The rest is controlled by the RNVQ FCR investment fund from Portugal.

Another project of the same size, Ialomița Nord, is among the winners. Project firm Țăndărei Solar is owned by Greenvolt, which was taken over by KKR.

European Energy, headquartered in Denmark, is developing the Berești wind project 117.8 MW. Eurowind Energy, also from Denmark, had success in the auction with its projects Vector (24 MW) and Frumușița (70 MW)

The list includes the Cobadin wind farm project of 50 MW, controlled by French company Qair.