Bids for the first Contracts for Difference (CfD) auction can be submitted by November 18, 2024, as the additional requests for clarifications received after October 23, 2024 – the initial deadline for completing the process – have been processed, the Ministry of Energy announced on Tuesday.
The ministry has published on its website an updated 64-page document regarding the questions and answers related to the clarification of the aspects related to participation in the auction process in order to provide as pertinent information as possible in order to ensure as wide a participation as possible in the first CfD auction.
The document includes clarifications related to contract amendments, rules applicable to the applicant, about the auction procedure, guarantees (participation and performance), CFDs, the obligations of the beneficiary, financial resources and CFD payments. There are also clarifications about the legislative changes, the content of the technical bid and the financial bid, eligibility criteria, limitations on liability and losses, penalties and much more.
The Ministry of Energy says that the clarification process related to the first auction for the energy generation from renewable resources of onshore wind and solar photovoltaic energy through Contracts for Difference (CfD) is closed, encouraging interested parties to submit bids by November 18.
The first auction under the CfD scheme will support the development of photovoltaic projects of a capacity of 500 MW and onshore wind projects of 1,000 MW.
According to the Minister of Energy, Sebastian Burduja, investors will get support in the form of a contract for difference, which will guarantee them a fixed price for the sale of electricity for a period of 15 years. The price will be set by competitive bidding, with a maximum starting threshold of 78 euros/MWh for photovoltaic projects and 82 euros/MWh for onshore wind projects.
“I am inviting as many investors as possible to participate in this auction and contribute to the transformation of the energy sector in Romania. The more bidders we have, the more we will be able to accelerate the change necessary to increase the energy production from renewable resources at a competitive cost. Romania is the first country that has managed to finance the CfD scheme from the Modernisation Fund, getting EUR 3 billion for this purpose,” Energy Minister Sebastian Burduja said at the beginning of September.
A second auction, which will cover a total capacity of 3,500 MW of onshore wind and photovoltaic projects, is scheduled for 2025. These measures are designed to increase and strengthen Romania’s capacity to generate energy from renewable resources, bringing major benefits to the economy and citizens, as well as ensuring energy security and price competitiveness.
The signing of the contracts for the first tender is expected to be completed by the end of 2024.