The Ministry of Energy announces a 150 million euro program aimed at improving the energy efficiency of Romanian industry

Economic operators, companies and autonomous regies in Romania that carry out activities on the national territory in the steel, cement, oil and natural gas, energy production, but also in other highly polluting industries, can access a new program worth 150 million euros from the Modernization Fund, dedicated to investments in energy efficiency, the Ministry of Energy announced in a press release.

According to the cited source, the call for projects is part of Key Program 7: Energy efficiency in industrial installations included in the EU-ETS – Support for the purchase and use of CO2 capture, transport, storage and use installations – CCS/CCU and for the BAT-level modernization of installations included in the EU-ETS in the steel, cement, oil and natural gas, energy production and other highly polluting industries.

‘I reaffirm our firm commitment to supporting the transition to a safe, competitive and clean economy. In this regard, we attach particular importance to increasing energy efficiency in industrial installations, an essential pillar for achieving climate objectives and reducing operational costs, and we are considering facilitating access to financing dedicated to the acquisition and use of CO2 capture, transport, storage and utilisation installations, as we consider these technologies crucial for the decarbonisation of heavy industrial sectors and we are determined to support their implementation. We also support the BAT-level modernization of installations included in the EU-ETS in the steel, cement, oil and gas, power generation and other heavily polluting industries. Investments in state-of-the-art technologies are essential for reducing emissions and improving industrial performance (…), declared, in the cited press release, the Minister of Energy, Sebastian Burduja.

The Applicant Guide is developed by the Ministry of Energy for applicants who wish to obtain financing from the funds allocated to Romania through the Modernization Fund (MF) and come with investment projects in industries that use installations that fall under the scope of the GHG emission trading scheme (EU-ETS), with a direct impact on the energy efficiency of technological processes and the achievement of considerable energy savings and the reduction of greenhouse gas emissions.

‘The investments financed under this measure will have a positive impact in terms of reducing greenhouse gas emissions (GHG) resulting from the energy savings achieved as a result of the implementation of the investment by the beneficiaries (equivalent tons of CO2/year), as well as reducing energy consumption (electricity and heat, energy resources) resulting from the energy savings achieved as a result of the implementation of the investment by the beneficiaries (MWh). Through this funding program, the Ministry of Energy provides support for the implementation of the best technologies (BAT) in enterprises participating in the EU-ETS, for energy efficiency measures,’ the ministry notes.

The new program is addressed to economic operators (such as companies and autonomous regies) that meet the following conditions: they are entities with legal personality, registered in Romania or in an EU member state, respecting the condition of registration with ONRC; they carry out industrial activities on the territory of Romania in the areas provided for by Annex I of Directive 2003/87/EC on the greenhouse gas emission allowance trading system (EU-ETS) (among these are the steel, cement, oil and natural gas, energy production and other heavily polluting industries); they provide proof of participation in the EU-ETS scheme at the time of submitting the funding application.

The maximum amount of state aid that can be granted through this call is up to 30 million euros/beneficiary/investment project, representing a maximum of 100% of the eligible costs provided for in Annex 4 of the guide.

Assets that can be taken into account when establishing the eligible costs to be financed: specific installations/equipment for industrial enterprises, in order to obtain primary energy savings, based on the energy audit and balance (for example: production lines, motors, transformers, air compressors, pumps, technological installations/equipment, boilers, heat exchangers, frequency converters, capacitor banks, integrated energy consumption management systems, melting furnaces and others).

On the other hand, the following are not eligible: renewable energy production facilities, fossil fuel-based energy equipment, including natural gas, and investments in the cogeneration, district heating and/or cooling and electricity production sectors.

The applicant guide is available for public consultation on the website of the Ministry of Energy for a period of 30 calendar days from the date of publication, and during this time interested parties may submit proposals and observations.

The maximum amount of state aid that can be granted through this call is up to 30 million euros/beneficiary/investment project, representing a maximum of 100% of the eligible costs provided for in Annex 4 of the guide.

Assets that can be taken into account when establishing the eligible costs to be financed: specific installations/equipment for industrial enterprises, in order to obtain primary energy savings, based on the energy audit and balance (for example: production lines, motors, transformers, air compressors, pumps, technological installations/equipment, boilers, heat exchangers, frequency converters, capacitor banks, integrated energy consumption management systems, melting furnaces and others).

On the other hand, the following are not eligible: renewable energy production facilities, fossil fuel-based energy equipment, including natural gas, and investments in the cogeneration, district heating and/or cooling and electricity production sectors.

The applicant guide is available for public consultation on the website of the Ministry of Energy for a period of 30 calendar days from the date of publication, and during this time interested parties may submit proposals and observations.