ROMANIA: New Piece in CfD Puzzle
Share
With the entire market eagerly awaiting the launch of the Contracts for Difference (CfD) scheme, the Ministry of Energy has published another crucial piece of the CfD puzzle: the order approving the scheme. The only missing piece now is the Ministry of Energy’s order for auction initiation. This latter order is also the most important one, as it will contain key information such as the auction timeline, maximum strike price, participation and performance guarantees, eligibility requirements, tied bids ranking criteria, and details on the process, including Q&A process.
The new order regulates some of the principles that had been only announced by the Ministry of Energy or were available in the European Commission decision approving the CfD scheme.
What is new in the CfD legislation?
1. Maximum strike price: The maximum strike prices approved by the European Commission (EUR 91/MWh for solar PV and EUR 93/MWh for onshore wind) were adjusted but not yet disclosed. The updated prices will be provided in the auction initiation order.
2. Auction timeline: It is reconfirmed that first auction will be conducted this year and second auction by the end of 2025. The specific timeline will be provided in the auction initiation order.
3. Auction Capacity: The total capacity of the first solar PV auction has been reduced from 1000 MW to 500 MW, with the remaining capacity shifted to the 2025 auction; from official declarations, this adjustment is due to the high number of solar PV projects already supported by other schemes, such as PNRR and the Modernization Fund.
4. Eligibility:
o Start of constructions: Projects that initiated construction after July 20, 2022, are eligible.
o Minimum capacity: 5 MW per project.
o Maximum capacity: 25% of the total auction capacity per project/group.
o ATR: The ATR may be obtained within 6 months of the CfD signing – if an ATR is absent upon application date, it is important to understand what documentation is expected to evidence the eligibility criterion that the project can be commissioned within 3 years of the CfD signing.
5. Evaluation process: Technical offers will be opened first, to determine qualified bidders, followed by the opening of financial offers, for the qualified bidders only.
6. Capacity reallocation: If any selected bidder fails to sign the CfD agreement, the respective capacity will be reallocated to the next-ranked bidder.
7. Auction transparency: Information on CfD beneficiaries/projects, target commissioning date, strike prices and list of non-selected bidders will be published after CfD agreements are signed.
***
Article written by
