Highlights
- EBRD intends to further support Romania through its Renewable Energy Programme
- MoU signed by Energy Minister Burduja and EBRD Romania Director Victoria Zinchuk
- EBRD, a leader in green finance, strongly supports Romania's renewables ambition
The European Bank for Reconstruction and Development (EBRD) intends to support the design and implementation of future renewable energy auctions in Romania, according to a Memorandum of Understanding signed today (Dec 6) by the country's Energy Minister Sebastian Burduja and EBRD Head of Romania Victoria Zinchuk.
Supported by the EBRD, in September Romania opened the first auction for 1.5 GW of renewable energy generation capacities - 500 MW of solar PV and 1 GW of onshore wind - along with a Contract for Difference (CfD) mechanism for the construction of renewable energy installations. This represented a step forward in the country's ambitious plans to scale up renewable energy generation.
Today's Memorandum of Understanding sets out EBRD and Romanian aspirations for follow-on steps.
As well as EBRD support for the implementation of a second round of renewables auctions by the end of 2025, these include the development of a support scheme for storage capacities (for instance, for pumped storage hydropower) and related competitive storage tenders as well as regulatory reforms required to connect storage capacities and allow them to participate in different energy markets.
"We are looking forward to support further the Ministry of Energy and contribute to scaling up private sector investments in the sector," said EBRD Head of Romania Victoria Zinchuk.
"This partnership will facilitate the creation of a modern energy system, capable of meeting Romania's energy needs and fostering investments in renewable sources, including through the initiation of a new round of auctions for capacities totalling 3,500 MW. It represents a decisive step toward ensuring the energy stability and resilience that are more crucial than ever," said Mr Burduja.
Investment in renewable energy is critical to support Romania's ambition to reach the climate commitments outlined in the country's National Energy and Climate Plan. This targets 38.3 per cent of renewable energy in gross final energy consumption by 2030. Romania's new draft energy strategy aims for 44 per cent of gross final energy consumption from low-carbon sources by 2035.
The EBRD's Renewable Energy Programme is a strategic priority for the energy sector, helping countries to scale up renewable energy by developing supportive policy frameworks that, together with well-designed competitive auctions, are conducive to private sector investment.
Through its Renewable Energy Programme, the EBRD currently supports 16 countries at varying stages of electricity market development, and its support covers more than 15 auctions. To date, auctions supported by EBRD have led to over 5,000 MW of capacity being awarded in 7 countries. A total of 5 projects with a combined capacity of around 690 MW have reached financial close.
In Romania, the Bank fully supports the country's move towards cleaner energy. Since the beginning of this year, the EBRD has financed nearly 1GW of renewable capacity across six projects. These investments, amounting to over 180 million from EBRD funds, have further mobilised almost 1 billion of private and public finance.
Overall, the EBRD has invested nearly 11.5 billion in 550 projects in Romania to date.
More information about the CfD Mechanism and the auction is available here.
By Vanora Bennett
