BUCHAREST (Romania), May 13 (SeeNews) – Romania’s energy ministry said it launched its second contract for difference (CfD) auction, aiming to support the development of 2,000 MW of onshore wind and 1,472 MW of solar capacities.
“The 25% cap on the maximum capacity awarded per applicant is removed, with the aim of improving cost efficiency, allowing bidders to scale up their projects and encouraging more competitive strike prices. At the same time, there will be no restrictions on application capacity in MW. Therefore, any applicant will be able to submit multiple bids,” the ministry said in a press release on Monday. “To mitigate the risk of losing a marginal bid with a large capacity, the current rules stipulate that the marginal bid cap is set at 120%.”
The maximum strike prices for the auction were set at 80 euro ($88.88) per MWh for onshore wind and 73 euro per MWh for solar projects, as per the press release.
The deadline for submitting bids is July 11, while winning bidders will be notified on August 14, according to the ministry’s estimated timetable.
In the first CfD auction held last year, the energy ministry awarded contracts for the development of 1.528 GW of wind and solar capacity. Out of 48 submitted bids, eleven applicants secured contracts for 432 MW of solar photovoltaic power, while ten secured contracts for 1.096 GW of onshore wind capacity. The estimated weighted average strike prices in the first auction were 65 euro per MWh for electricity from onshore wind farms and 51 euro per MWh for solar photovoltaic parks.
Financed through the EU’s Modernisation Fund, Romania’s CfD mechanism is aimed at supporting renewable energy projects totalling 5 GW in two auction rounds. Romania is the first country to secure financing from the Modernisation Fund for a CfD scheme, receiving a total of 3 billion euro, energy minister Sebastian Burduja said last year.
Funded by revenues from the auction of emission allowances from the EU’s Emissions Trading System, the Modernisation Fund assists ten EU countries with lower incomes in their transition to climate neutrality.
($ = 0.9 euro)