Romania sets a significant precedent in its transition to renewable energy by awarding 1,528 MW of capacity in its first Contracts for Difference (CfD) tender. This event, organized by the Ministry of Energy and financed through the Modernization Fund, aims to incentivize sustainable investments and ensure stable prices for consumers over the next 15 years.

In this tender, 1,096 MW were allocated to onshore wind energy projects and 432 MW to photovoltaic solar projects. The awarded prices averaged €65/MWh for wind and €51/MWh for solar.

It is worth noting that the maximum thresholds for the tender were €78/MWh for photovoltaic projects and €82/MWh for wind energy. The awarded prices were 20% to 30% lower than these limits, reflecting “investors’ confidence in Romania and the future of the energy system,” stated Sebastian Burduja, Minister of Energy.

The Ministry of Energy highlighted that for electricity production from onshore wind sources, the maximum price was €77.3/MWh and the minimum was €54.49/MWh. Meanwhile, photovoltaic solar energy saw a price range of €54.18/MWh as the maximum and €45.05/MWh as the minimum.

“The auction was competitive and transparent, demonstrating strong investor interest. The prices reflect high competition among bidders. It is great news for Romania as it ensures lower costs while continuing to attract investment. It also proves that CfD auctions are an effective way to support renewable energy projects,” says Sorin Stefan, a renewable energy engineer, in an interview with Energía Estratégica España.

Auction Results

The Ministry of Energy described the auction as a “success.” Among the 48 bids received, 47 met the eligibility criteria, resulting in a total offered capacity of 1,196 MW for onshore wind and 1,615 MW for photovoltaic solar.

However, 21 developers will be declared winners, of which 11 are solar energy projects. Among the awarded photovoltaic projects are: Econergy Balkan SRL, developer of the CEF Heliolux plant with a capacity of 125 MW at a price of €49.40/MWh; Planta Solar Slobozia, with its CEF Slobozia 3 park of 70.2 MW at €54.18/MWh; and Light Renewables, with its CEF Măceșu de Jos Cricea Est project of 49.7 MW at €53.97/MWh.

For wind projects, the Ministry has not yet published the detailed list, but it is known that 10 companies were awarded contracts, consolidating a total of 1,096 MW for this technology.

Context and Future of Auctions

This CfD mechanism provides financial stability to developers and facilitates access to capital for large-scale clean energy projects. The Government has already announced a second round of tenders planned for 2025, with the ambitious goal of incorporating an additional 3,500 MW of renewable capacity and an energy storage scheme.

The implementation of this mechanism, which ensures predictable revenues for producers, will lead to “a reduction in energy prices for end consumers,” stated Diana-Alexandra CODĂU, Director of European Affairs and International Relations at Romania’s Ministry of Energy, in an interview with Energía Estratégica España.

Stefan highlights: “The success of this first auction sets the stage for the next one in 2025. We can expect even greater interest from investors. There are also plans for a new auction for storage capacities, which is key to balancing the energy grid”.

Meanwhile, the Romanian Photovoltaic Energy Association (RPIA) remarked: “We are closely monitoring the results of the Contracts for Difference (CfD) auctions, which should add 2.5 GW of new installations. For the rooftop photovoltaic sector, the current development rate exceeds 1 GW per year. Thus, our data indicates that Romania is on track to achieve – and even surpass – its national targets,” the association said in dialogue with Energía Estratégica España.