Skip to main content

EC approves €3bn Romanian state aid scheme for onshore wind and solar PV

The European Commission has approved under the State aid Temporary Crisis and Transition Framework a €3bn (RON15.2bn) Romanian state aid scheme to support onshore wind and solar PV power plants, in line with the Green Deal Industrial Plan. The aid will be granted through competitive bidding procedures and will take the form of a two-way Contract for Difference (CfD) with the strike price being determined through the bidding procedures (“pay as bid”) and the reference price will be calculated as a monthly output-weighted average of the market price of electricity in the day ahead markets. 

If the reference price is below the strike price, the beneficiary will be entitled to receive payments equal to the difference between the two prices. However, if the reference price is above the strike price, the beneficiary will have to pay the difference to the Romanian authorities, guaranteeing a minimum level of return to the beneficiaries and ensuring that the beneficiaries will not be overcompensated for periods when the reference price is higher than the strike price. The aid will be granted before 31 December 2025

Introduced in February 2023, the Green Deal Industrial Plan is a key initiative of the European Green Deal and aims to enhance the EU's manufacturing capacity for net-zero technologies, to foster the transition towards a net-zero economy.