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Romania’s Ministry of Energy has approved a new contracts-for-difference (CfD) mechanism, set to launch later this year. The first round will include 500 MW of solar, with the remaining capacity to be allocated in next year’s tender.
Romania’s Ministry of Energy has officially approved a CfD scheme for solar and wind projects from 5 MW in size. The long-awaited mechanism was originally expected to launch last year, but the latest order reconfirms the first auction will be conducted this year, with a second auction before the end of the 2025.
The key change from previous updates is that the total capacity of the first solar auction has been reduced from 1000 MW to 500 MW, due to a high number of solar projects already being supported by other schemes.
The remaining capacity has shifted to the second auction, which will now tender 2 GW of solar. The two auctions are planning to tender a total 5 GW of solar and wind.
As outlined in previous updates, the maximum strike price has been confirmed at €91 ($99.51)/MWh for solar projects and €93/MWh for wind projects. The CfD agreement will be for 15 years from the date of commercial operation.
The European Commission is backing the project with a €3 billion ($3.3 billion) funding package through its Modernization Fund.
Bucharest-based law firm Nyerges & Partners said the only missing piece is the ministry’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 firm said.
Earlier this year, Romania’s parliament adopted a bill mandating prosumers with PV systems with capacities between 10.8 kW and 400 kW to install energy storage systems.
The country’s National Energy Regulatory Authority also recently approved an auction-based mechanism for grid connections of plants above 5 MW, to come into effect at the start of 2026.
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