Renewables

Romania gets EU’s green light for EUR 3 billion of subsidies for wind, solar

Romania gets green light for EUR 3 billion subsidies for wind solar

Photo: Alicja from Pixabay

Published

March 8, 2024

Country

Comments

comments icon

0

Share

Published:

March 8, 2024

Country:

Comments:

comments icon

0

Share

The European Commission has approved Romania’s EUR 3 billion scheme to support the construction and operation of new solar photovoltaic facilities and onshore wind farms.

The mechanism will foster the transition towards a net zero economy in line with the Green Deal Industrial Plan, the European Commission said.

The scheme was approved under the Temporary Crisis and Transition Framework for state aid. The commission launched it a year ago to support measures in sectors that are key to accelerating the green transition and reducing fuel dependencies.

The aid will be granted through a competitive bidding process by the end of 2025, according to the announcement.

The subsidies will be paid through contracts for difference

The European Union’s executive arm added that the support would be delivered in the form of two-way contracts for difference (CfDs).

The strike price will be determined through bidding procedures (pay as bid) and the reference price will be calculated as a monthly output-weighted average of the market price of electricity in the day-ahead markets.

When the reference price is below the strike price, the beneficiary will be entitled to receive payments equal to the difference between the two prices. However, when the reference price is above the strike price, the beneficiary will have to pay the difference to the Romanian authorities.

Vestager: The use of CfDs provides incentives for the swift rollout of renewable energy sources and prevents overcompensation

Margrethe Vestager, Executive Vice-President in charge of competition policy, said the EUR 3 billion scheme would enable Romania to support the deployment of solar photovoltaic and onshore wind power plants.

“The use of contracts for difference provides incentives for the swift rollout of renewable energy sources and prevents overcompensation. This scheme will also contribute to reduce Romania’s dependence on imported fossil fuels,” she added.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

East West Energy Corridor extend Turkey Montenegro

East-West Energy Corridor to extend from Turkey to Montenegro

24 July 2024 - Bulgaria's ESO received a grant from the US for a feasibility study for the proposed East-West Energy Corridor between Turkey and Montenegro

Portable photovoltaic system invented for disaster stricken areas

Portable photovoltaic system invented for disaster-stricken areas

24 July 2024 - Turkish engineers have designed a foldable and portable photovoltaic system of 15 kW for restoring power supply in case of a disaster

macedonia mepso ebrd loan grid renewables koka basso bozinovska

MEPSO secures funds for grid investments; upgrade to enable connecting 1.2 GW of renewables

23 July 2024 - MEPSO and the European Bank for Reconstruction and Development (EBRD) have signed an agreement on a EUR 26.4 million loan

fiat grande panda stellantis serbia electric cars automobiles

Stellantis starts producing electric cars in Serbia

22 July 2024 - With the announced state subsidies, Fiat Grande Panda from the Kragujevac plant could cost around EUR 18,000