Romania Launches Renewable Energy Auctions with EBRD Support

Romania has introduced a Contract for Difference (CfD) mechanism aimed at boosting renewable energy development, supported by the European Bank for Reconstruction and Development (EBRD). The country has opened its first auction for 1.5 GW of renewable energy capacity, including 500 MW of solar photovoltaic (PV) and 1 GW of onshore wind.

The EBRD’s involvement in designing and implementing the CfD scheme is funded by Spain and the European Union Technical Support Instrument, managed by DG REFORM. Victoria Zinchuk, EBRD Head of Romania, highlighted that the scheme aligns with the EBRD’s strategy to support Romania’s renewable energy sector and attract private sector investments.

The two-way CfD mechanism offers revenue stability to developers, encouraging investments in renewable energy and enhancing market integration. The financing for the CfD is provided by the European Union Modernisation Fund, which will cover a total of 5 GW in projects. This includes the current 1.5 GW auction and a subsequent 3.5 GW auction planned for 2025.

This initiative moves Romania closer to its long-term decarbonisation goals. The country aims to achieve 34% renewable energy in gross final energy consumption by 2030 and 44% by 2035, as outlined in its National Energy and Climate Plan and draft energy strategy.

The EBRD has been a significant player in renewable energy auctions across its regions. In Romania, the EBRD has financed nearly 1 GW of renewable capacity this year alone, contributing over €180 million and mobilizing nearly €1 billion in total private and public investment. To date, the EBRD has invested more than €11.3 billion in 549 projects across Romania.