Romania’s renewable energy investors seek transparency in public support distribution.

By Oliver Townsend Jul 3, 2024
Wind and solar energy investors in Romania ask for more transparency in allocation of public support.jpegOrginal image from:

Investors in wind and solar energy in Romania are advocating for increased transparency in the allocation of public support for their projects. The Romanian Photovoltaic Industry Association (RPIA) and the Romanian Wind Energy Association (RWEA) have jointly requested the government to provide more predictability in the distribution of public support.

Challenges in Public Support Allocation

The associations are concerned about the potential revision of the Contract for Difference (CfD) support scheme between wind and solar energy projects. Initially, an equal split of the CfD scheme was announced, but there are indications that wind farms might benefit more due to existing financing for solar projects under other schemes. This uncertainty has raised questions about the development of projects funded through alternative programs.

Complexities of Renewable Energy Development

Developing renewable energy projects involves various factors such as economic viability, land availability, environmental impact, and grid connectivity. The competitive nature of RES development, coupled with legislative uncertainties, adds complexity to project execution. Winning calls for European funds do not guarantee the actual implementation and operation of projects, highlighting the need for clear support allocation guidelines.

Government Subsidies for Renewable Energy

Romania plans to allocate RON 15.2 billion (over EUR 3 billion) in subsidies for new solar and onshore wind capacities under the CfD mechanism. The funding from the Modernisation Fund marks a shift from past financing models that relied on end-consumer contributions. However, concerns remain regarding the sufficiency of the earmarked EUR 3 billion to cover the planned 5GW of projects.

Ensuring Sustainable Energy Development

As Romania aims to boost renewable energy production, ensuring transparency and fairness in public support allocation is crucial for the long-term success of the sector. By addressing investor concerns and providing a clear roadmap for subsidy distribution, the government can foster a conducive environment for sustainable energy development in the country.

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