Romania is about to tender 1 GW in onshore wind power and 1 GW in photovoltaic capacity as part of a 10 GW auction plan by 2030, the European Bank for Reconstruction and Development said.
Following several years of preparations, Romania is preparing to finally launch its first call for auctions for a contract-for-difference (CfD) support scheme for renewable energy. Onshore wind and solar power with a total capacity of 2 GW will be supported through the scheme for 15 years, according to the EBRD.
The auction will take place in the coming month, with successful bidders expected to be announced in November, the international financing institution revealed. A note to potential bidders is supposed to be published on the Ministry of Energy’s website.
The EBRD said it is working with the Ministry of Energy and other Romanian authorities to create the necessary legal and regulatory framework for the CfD support scheme and to implement the competitive tender process for the first round of auctions in 2023. The lender also participated in developing the auction mechanisms in the Western Balkans.
The EBRD is participating in the development of renewable energy auction schemes in the Western Balkan region as well
Two-way CfD schemes like the one about to be implemented in Romania are designed to incentivize investments in renewable energy by providing revenue stability to developers and strengthening the market integration of renewables. The forthcoming auctions would be the first round of a multi-year plan, which envisages awarding such contracts for a total of 10 GW of onshore wind power and PV capacity by 2030.
EBRD’s Regional Head of Romania and Bulgaria Mark Davis highlighted Romania’s plans to decarbonize its economy in line with the National Recovery and Resilience Plan and domestic renewable energy targets. The rollout of the CfD scheme awarded through auctions is critical to unlocking private-sector investment and ensuring the transition to a resilient and green energy sector, he stressed.