Romania places bets on renewables: new initiatives to attract investments
Romania plans to scale up the deployment of renewable projects to reach its 2030 renewables target of 30.7%, adding around 7 GW of new renewables capacity, of which around 3.7 GW is projected to be solar projects.
In the fourth quarter of next year a new support scheme, based on contracts for difference (“CfD”) mechanism is expected to be introduced. The CfD scheme is implemented to support the deployment of large-scale renewable projects (more than 5 MW) and is based on a difference between the market price and an agreed “strike price”. Last year the Ministry suggested the guidelines with envisaged EUR 125 million that would be earmarked per year for renewable energy projects in Romania. The European Bank for Reconstruction and Development (EBRD) assists on the development of the system.
Moreover, Romania’s Energy Strategy underlines an important role of offshore wind in the development of the renewable energy sector. The Romanian Parliament is drafting a framework for implementing investments in this sector as well as a new electricity law, which will be designed with the support of the European Bank for Reconstruction and Development.
Romania’s current electricity production comes mostly from hydropower (34%), coal (21%) and wind (15%).