With Romania about to launch its first Contracts for Difference (CfD) scheme, it is very important that it works very well right from the beginning, so that new CfD arrangements for other technologies such as nuclear, battery storage or offshore wind energy follow, Energy Minister Sebastian Burduja said on Thursday.
Romania's move towards such financial agreements "means that, following a bidding process, fixed electricity selling prices will be set for 15 years for investors. So, an investor who wins these competitive auctions will be able to sell electricity for a fixed price for 15 years. Predictability, support for investments and green energy, because this year the auction is for 1,500 MWh - 1,000 wind and 500 solar - plus 3,500 MWh planned for next year in a new auction, where we are still to see the amount of wind and solar energy," the minister explained at a press conference organized on the occasion of an event dedicated to clarifications for the potential beneficiaries of the CfD program.
Burduja emphasized that this is a milestone in the NRRP, a commitment of Romania's, but also a model practiced by many other states, and which works quite simply.
"We also envisage the nuclear sector. Nuclearelectrica needs such a scheme for the refurbishment of Unit one, but very likely, also for reactors No. 3 and 4. There is also the part of storage in batteries and pumped storage hydropower plants like that at Tarnita-Lapustesti. And, last but not least, we will put out a CfD scheme for offshore wind facilities. It is very important that this first auction unfolds smoothly, so that we can then capitalize on this moment and roll out new such schemes for other technologies as well," Burduja pointed out.
The Energy Minister's order and the annexes related to the CfD state aid scheme intended for the production of electricity from renewable sources was published in the Official Journal in early September. According to a statement by Minister Burduja at that time, "the maximum starting threshold for the bidding will be EUR 78 per MWh for photovoltaic projects, and EUR 82 per MWh for onshore wind projects."
The submission of bids under this first scheme will take place around mid-November and the assessment of the bids is planned by mid-December, so that the signing of the contracts for the first auction is expected to be completed by the end of this year.
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