Romania is moving forward decisively with its energy transition strategy and preparing for a second round of auctions under the Contracts for Difference (CfD) mechanism. The Ministry of Energy officially published the new capacity targets: 1,472 MW for solar photovoltaic projects and 2,000 MW for onshore wind, totaling 3,472 MW in this new call, expected towards the end of the third quarter of 2025. The Ministry of Energy has issued Order no. 319/07.04.2025, published in the Official Gazette.

This new process seeks to consolidate the market signal sent during the first auction, held in 2023, where industry interest exceeded official expectations. On that occasion, a total of 1.5 GW were awarded: 1,096 MW to onshore wind projects and 432 MW to solar photovoltaic projects. The awarded prices averaged €65/MWh for wind energy and €51/MWh for solar energy.

CfD: Stability to Attract Investment

The Romanian CfD scheme is designed to provide long-term revenue stability to renewable generation project developers. In this model, developers present a strike price; if the market price falls below this threshold, the state pays the difference. Otherwise, the developer returns the surplus to the system.

This approach seeks to reduce financial risk for investors and accelerate the deployment of clean technologies in line with Romania’s and the European Union’s climate commitments. Furthermore, the mechanism has already been approved by the European Commission and is financed with €3 billion from the Modernization Fund, ensuring its implementation without impacting end-consumer bills.

Institutional Support and Sector Expectations

The Romanian Photovoltaic Industry Association (RPIA) highlighted the country’s progress with this new process. “Romania is moving forward with the second round of CfD auctions,” the organization stated, emphasizing that the announcement marks an important new step in accelerating investments in renewables.

“The second round builds on the momentum generated by the first, expanding capacity and creating conditions for broader market participation,” RPIA emphasizes. They also welcome the fact that a new legal framework is being developed that incorporates the lessons learned from the previous auction, providing greater clarity and confidence to investors.

European Funds and Regulatory Framework

The announcement is part of Romania’s National Recovery and Resilience Plan (PNRR), which includes a structural review of the energy sector. Through this financing mechanism and with support from the Modernization Fund, the government has prioritized measures that facilitate the penetration of clean technologies without compromising fiscal sustainability.

Furthermore, the recent publication in the Monitorul Oficial (Romanian Official Gazette) introduced amendments to the Tax Code to ensure tax stability for projects, with specific rules for construction in public and concessioned domains, which will also impact the bankability of future renewable assets.

Market Signals

The second CfD auction will serve as a barometer for measuring the Romanian market’s capacity to absorb large-scale investments, in a regional context where other Eastern European countries are also activating similar schemes. With expanded objectives and clear financial conditions, Romania is positioning itself as a key emerging market for renewable energy developers in Eastern Europe.

The government’s goal is to consolidate the private sector’s confidence and begin commercial operations of the new projects before 2027, in line with European decarbonization commitments.