Evaluation of bids at the CFD tender – contracts for over 1500MW, new green energy production capacities, were awarded

The evaluation of the financial offers submitted by participants in the first Contracts for Difference (CFD) auction has been completed, the Ministry of Energy announces, specifying that contracts for over 1500MW of new green energy production capacities have been awarded.

Sebastian Burduja, Minister of Energy, stated: “We had a significant number of participants, and the resulting prices are very competitive, 20-30% below maximum prices. All our expectations regarding the success of this first auction were exceeded, which confirms the confidence that investors have in Romania and in the future of our energy system.”

Following the first tender for the State aid Scheme in the form of Contracts for Difference to produce electricity from renewable sources of onshore wind and solar photovoltaic energy, the financial evaluation of the submitted offers was completed on 12.12.2024. Out of a total of 48 offers submitted for both technologies, 47 were declared eligible to enter the financial evaluation stage. The total offered for onshore wind was 1,196 MW, respectively 1,615 MW photovoltaic.

Sebastian Burduja stated: “The successful completion of the first round of CFD auctions is a promise fulfilled for my mandate at the Ministry of Energy, but also a multiple premiere: the first auction of this kind in Romania and the first scheme for CFD contracts financed from the Modernization Fund at European level. What do these contracts mean? A fixed price for the electricity produced in the new capacities, for 15 years, a price established competitively, through a public auction. 

I am very happy because we had a significant number of participants, and the resulting prices are very competitive, 20-30% below the maximum prices. All our expectations regarding the success of this first auction were exceeded, which confirms the confidence that investors have in Romania and in the future of our energy system. This financial support mechanism helps stimulate investments in renewable energy projects, reducing financial risks for investors and providing long-term predictability.

This is just the beginning, because in the coming year new CFD auctions will be organized: another 3500MW for solar and wind parks, but also a completely new scheme for storage capacities. The success of this first round confirms that it is the right solution, appreciated by investors, and that meets their expectations. Moreover, we are fulfilling a new milestone in the PNRR through these contracts, which demonstrates a simple principle – if you want, you can!”

Following the evaluation of the financial offers, 21 applicants will be declared winners, namely 11 applicants for solar photovoltaic, totaling a total capacity of 432 MW and 10 applicants for onshore wind with a total capacity of 1,096 MW. Thus, the cumulation of the capacities declared winners – 1,528 MW – will allow reaching the threshold assumed by the PNRR for signing contracts for difference to produce energy from renewable sources of 1,500 MW.

Following the analysis of the winning bids, the following estimated weighted average exercise prices for the first round of CfDs resulted:

• production of electricity from onshore wind sources: 65 EUR/MWh;
• production of electricity from solar photovoltaic sources: 51 EUR/MWh.

We note that the minimum and maximum exercise prices offered and declared winners for each technology were as follows:

• production of electricity from onshore wind sources: maximum – 77.33 EUR/MWh, respectively minimum – 54.49 EUR/MWh;
• production of electricity from solar photovoltaic sources: maximum – 54.18 EUR/MWh, respectively minimum – 45.05 EUR/MWh.

Each of the successful bidders will sign contracts for difference at the offered strike price. Details of the prices offered by the participants will be available on the Ministry of Energy website, in the Contracts for Difference section.