Romania Launches First Auction under Contract for Difference (CfD) for Renewable Energy

Romania has initiated its first auction under the Contract for Difference (CfD) mechanism, aiming to award 1.5 GW of renewable energy capacities by year-end, split between 500 MW of solar PV and 1 GW of onshore wind. This marks a significant step in Romania's plan to increase the share of renewables in its energy mix.

Supported by the European Bank for Reconstruction and Development (EBRD) and funded by Spain and the European Union Technical Support Instrument, the CfD mechanism provides revenue stability to developers, encouraging investment. Victoria Zinchuk, Head of Romania at the EBRD, highlighted the alignment between Romania's renewable energy ambitions and the Bank’s strategy.

The auction is part of a broader plan, with another 3.5 GW expected to be awarded in 2025, making up a total of 5 GW. Funding is secured through the European Union Modernisation Fund.

Romania's targets include achieving 34% renewable energy in gross final energy consumption by 2030, with a new draft energy strategy aiming for 44% from low-carbon sources by 2035. The EBRD has already financed nearly 1 GW of renewable capacity in Romania this year, investing over €180 million. To date, the EBRD has invested €11.3 billion in 549 projects across Romania.

Source: EBRD