Romania has officially launched its first renewable energy auction, seeking to secure 1,500 MW of capacity. This Contract for Difference (CfD) auction, organized by the government, includes 500 MW of solar energy and 1 GW of onshore wind. Supported by the European Bank for Reconstruction and Development (EBRD), this competitive auction represents a key step in Romania’s plans to increase the share of renewables in its energy portfolio.
The EBRD’s assistance in designing and implementing the auction is funded by Spain and the European Union Technical Support Instrument, managed by DG REFORM. “Romania’s ambition to develop its renewable energy sector aligns perfectly with the EBRD’s strategy in the country. We look forward to continuing our support for the Ministry of Energy and enhancing private sector investments in this area,” stated EBRD Head of Romania, Victoria Zinchuk.
The two-way CfD mechanism encourages investment in renewable energy by providing developers with revenue stability and facilitating the integration of renewables into the market. Funding for this mechanism comes from the European Union Modernisation Fund, covering an initial wave of projects totaling 5 GW. This will be divided between this year’s 1.5 GW auction and a subsequent auction for 3.5 GW scheduled for 2025.
Romania’s draft energy strategy aims for 44% of gross final energy consumption to come from low-carbon sources by 2035. Since the start of the year, the EBRD has financed nearly 1 GW of renewable capacity across six projects, amounting to over €180 million from EBRD funds, which has catalyzed nearly €1 billion in private and public financing. Overall, the EBRD has invested over €11.3 billion in 549 projects in Romania to date.
