Romania to debut CfD support scheme for green energy in mid-Nov, ministry says
First auction to offer 1.5 GW of onshore wind and solar projects
CfD scheme to set maximum prices at 78 euros/MWh for solar, 82 euros for wind
Scheme funded by EU's Modernisation Fund, covering 5 GW worth of projects
Adds ministry comment, updates throughout
BUCHAREST, Sept 9 (Reuters) -Romania will launch its first auction of onshore renewable energy projects by mid-November through a contract-for-difference (CfD) support scheme funded by the European Union, the energy ministry said on Monday.
The scheme will set a strike price of 78 euros per megawatt hour for solar projects and 82 euros for wind, it said.
The long-awaited low-carbon energy-support scheme will set the price of electricity for providers at an agreed level for 15 years.
The first auction will offer 1.5 gigawatt worth of onshore wind and solar energy projects after the ministry scaled back the scope from 2 GW initially.
The ministry has revised down the prices for the first tender from an initial 91 euros per megawatt hour for solar and 93 euros for wind, set by the European Bank for Reconstruction and Development, which has helped the ministry create the legal framework for the contracts.
"Offers will be called for by mid-November," the ministry said in a statement. "Contracts for the first tender are expected to be signed by the end of this year."
The CfD scheme will be supported by 3 billion euros ($3.31 billion) which will come from the Modernisation Fund, a programme under the European Green Deal which supports 10 lower-income EU member states in upgrading their energy systems.
It will ultimately cover 5 GW worth of projects, with a second tender expected in 2025.
Romania uses a mix of gas, coal, hydro, nuclear and renewables for electricity generation and has committed to phasing out lignite, or brown coal, although the energy ministry is currently seeking an extension.
Romania could connect 1,373 MW worth of new electricity production to the national grid by year end, most of it from new solar parks, the energy ministry said earlier this month.
($1 = 0.9051 euros)
Reporting by Luiza Ilie; Editing by Tomasz Janowski
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
