Premium
The European Commission (EC) approving the two-way contract for difference aid scheme will allow Romania to continue exporting energy and consolidate its status as a regional leader in the energy sector, Energy Minister Sebastian Burduja says.
According to a press release issued by the Energy Ministry on Friday, the European Commission has approved a EUR 3 billion (RON 15.22 billion) Romanian scheme to support installations producing electricity from onshore wind and solar photovoltaic to foster the transition towards a net-zero economy. These funds will come from the Modernisation Fund, and 5000MW green energy (3000MW solar parks and 2000MW wind farms) is the largest investment in Romania's energy transition.
The aid will be granted through competitive bidding procedures and will take the form of a two-way contract for difference.
"For all Romanians, these investments mean a lower electricity price in the medium and long term, cleaner air and higher energy production. Romania in 2023 became, after many years, a net exporter of energy. And we will continue to export, with Romania consolidating its status as a regional leader in the energy sector. I want to thank you the entire team that managed this victory for Romania. It is a new milestone of the National Recovery and Resilience Fund (PNRR) achieved and, by far, the most important support granted so far by Romania to green energy production. I did a quick calculation. Under my term of office as the energy minister, I supported investments worth over EUR 15 billion in the Romanian energy sector," Burduja said.
He added that the aid scheme provides for two bidding rounds: in 2024 (the first auction of 2 GW - consisting of 1 GW solar and 1 GW wind) and in 2025 (the remaining 3 GW in the second auction, comprising 1.5 GW of wind and 1.5 GW of solar).
The mechanism will be financed from the Modernisation Fund to reduce the impact on consumers.
