Renewables

Romania’s Burduja reveals ceiling prices for wind, solar auctions

Romania Burduja reveals ceiling prices wind solar auctions Modernisation Fund

Photo: Sebastian Burduja / Facebook

Published

March 12, 2024

Country

Comments

comments icon

0

Share

Published:

March 12, 2024

Country:

Comments:

comments icon

0

Share

Romania will publish a call for its first solar and wind power auctions within weeks, pending the green light from the government and the Modernisation Fund, Minister of Energy Sebastian Burduja estimated. He announced the ceiling prices in the bids for CfD market premiums would be EUR 91 per MWh and EUR 93 per MWh, respectively.

Romania will be the first country to use the European Union’s Modernisation Fund to cover two-way contracts for difference (CfDs) with renewable electricity producers. The government received a green light last week from the European Commission for a EUR 3 billion state aid scheme for solar and wind power projects.

Auction winners will be entitled to a guaranteed price for the electricity they sell for 15 years, Minister of Energy Sebastian Burduja noted. Under a CfD, the government pays the private operator the difference if the market price is lower than the price in its contract. When it’s the other way around, the utility returns the difference.

It means predictability for encouraging strategic investments in Romania’s green transition, Burduja stressed. He vowed to make the competitive bidding process as competitive as possible.

“Because a lower reference price will give a signal to the entire European market, and even beyond the European Union, that Romania is really attractive for investments in the energy sector, on the one hand, and on the other hand, it no longer exposes the state to a risk of paying more than would be the case in a comfortable time horizon for investors of 15 years,” Burduja stated.

Hefty green energy subsidies crippled government finances a decade ago, so the renewables market collapsed and remained dormant for several years.

Romania expects approval from Modernisation Fund by end of March

Burduja estimated that the government would issue the necessary approval within a few weeks and that the Modernisation Fund would sign off on the auctions by the end of the month. Officials were earlier targeting March 1 for the launch of the public call. The budget for the first round was seen at EUR 815 million.

The upcoming auctions are envisaged to be held for projects with an overall 1 GW in solar power and 1 GW in wind power capacity. Another 1.5 GW for each technology is planned for next year, bringing the combined quota to 5 GW.

Burduja: Auctions to bring significantly lower prices

Burduja revealed that the ceiling, the maximum bidding prices, would be EUR 91 per MWh for photovoltaics and EUR 93 per MWh for wind farm projects. The levels were determined with consultants and the European Bank for Reconstruction and Development.

The minister said he expects final auction prices to be significantly lower. Last year Romania was a net electricity exporter, he underscored. It was the first time since 2018.

The adoption of the legal framework for CfD auctions is several years late, though the government provided other kinds of subsidies. The country is about to pass an offshore wind power law.

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

belgrade energy forum bef 2025 western balkans electricity market coupling cbam

Western Balkans power markets: hope for coupling with EU, concerns about CBAM

29 May 2025 - Representatives of TSOs, regulators and power exchanges gathered at a panel on the integration of Western Balkans markets into the EU market

Global battery storage capacity expands record 200 GWh 2024

Global battery storage capacity expands by record 200 GWh in 2024

29 May 2025 - The cost of storing electricity has dropped thanks to the declining cost of battery projects and technological advancements, Rystad says

Olympus CCUS project breaks ground in Greece

Olympus carbon capture project breaks ground in Greece

29 May 2025 - Carbon capture, utilization and storage (CCUS) is a must for the future of the cement industry, Prime Minister Kyriakos Mitsotakis said

CyberGrid is committed to energy transition in SEE with its aggregation solutions Candellari

CyberGrid is committed to energy transition in SEE with its aggregation solutions

28 May 2025 - CyberGrid's Nikolaj Candellari said at BEF 2025 that the firm believes in the energy transition in SEE, contributing to the process with its solutions