Romania has launched its first renewables auction, for 1500MW of capacity.
The Contract for Difference (CfD) auction held by the government breaks down as 500MW of solar and 1GW of onshore wind.
Supported by the EBRD, the competitive auction is the next step in the country’s ambitious plans to scale up the share of renewables in its energy mix.
EBRD support for the design and implementation of the scheme is funded by Spain and the European Union Technical Support Instrument, managed by DG REFORM.
“Romania’s ambition to develop its renewable energy sector is fully aligned with the EBRD’s strategy in the country.
“We are looking forward to support further the Ministry of Energy and contribute to scaling-up private sector investments in the sector,” said EBRD Head of Romania Victoria Zinchuk.
The two-way CfD scheme incentivises investments in renewable energy by providing revenue stability to developers and strengthening the market integration of renewables.
The financing of the CfD mechanism is ensured by funds secured from the European Union Modernisation Fund.
This covers a first wave of projects for a total of 5GW, split into this year’s 1.5GW auction and a second one for 3.5GW in 2025.
Romania’s new draft energy strategy aims for 44% of gross final energy consumption from low-carbon sources by 2035.
Since the beginning of this year, the EBRD has financed nearly 1GW of renewable capacity across six projects.
These investments, amounting to over €180m from EBRD funds, have further mobilised almost €1bn of private and public finance.
Overall, the EBRD has invested more than €11.3bn in 549 projects in Romania to date.