The European Bank for Reconstruction and Development (EBRD) intends to support the design and implementation of future renewable energy auctions in Romania, under an agreement signed with the country’s government.
A memorandum of understanding (MoU) outlining the cooperation was signed by the country’s Energy Minister Sebastian Burduja and EBRD Head of Romania Victoria Zinchuk.
Supported by the EBRD, in September Romania opened the first auction for 1.5GW of renewable energy generation capacities – 500MW of solar and 1GW of onshore wind – along with a Contract for Difference (CfD) mechanism for the construction of renewable energy installations.
This represented a step forward in the country’s ambitious plans to scale up renewable energy generation.
Today’s MoU sets out EBRD and Romanian aspirations for follow-on steps.
As well as EBRD support for the implementation of a second round of renewables auctions by the end of 2025, these include the development of a support scheme for storage capacities (for instance, for pumped storage hydropower) and related competitive storage tenders as well as regulatory reforms required to connect storage capacities and allow them to participate in different energy markets.
“We are looking forward to support further the Ministry of Energy and contribute to scaling up private sector investments in the sector,” said Zinchuk (pictured left).
Investment in renewable energy is critical to support Romania’s ambition to reach the climate commitments outlined in the country’s National Energy and Climate Plan.
This targets 38.3% of renewable energy in gross final energy consumption by 2030.
Romania’s new draft energy strategy aims for 44% of gross final energy consumption from low-carbon sources by 2035.
The EBRD’s Renewable Energy Programme is a strategic priority for the energy sector, helping countries to scale up renewable energy by developing supportive policy frameworks that, together with well-designed competitive auctions, are conducive to private sector investment.
Through its Renewable Energy Programme, the EBRD currently supports 16 countries at varying stages of electricity market development, and its support covers more than 15 auctions.
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.