The “Romanian Photovoltaic Industry Association” (RPIA) and the Romanian Wind Energy Association (RWEA), representing manufacturers, developers and service and equipment providers in the renewable energy sector, with a total installed capacity of over 5 GW, welcome the launch of Contracts for Difference (CfD), the only support mechanism that, designed and implemented in accordance with European regulations, protects both end consumers and investors from market volatility.
The national and European energy sector is undergoing accelerated transformation because of the energy crisis caused by the COVID-19 pandemic and Russia’s invasion of Ukraine, which has led to a sharp increase in prices and a shift towards clean technologies. In this new strategic context, where ensuring the rapid and efficient implementation of renewable sources has become a priority, policies, measures, and mechanisms are needed to support the transition objectives.
CfDs play a key role in achieving these targets as they protect consumers and investors from economic and political volatility, thereby reducing the cost of capital and stimulating investment through long-term income stability. For Romania, a market with undeniable potential, but with an unpredictable regulatory framework, this mechanism is essential to increase the degree of trust of all actors involved.
In the context of the new European objective regarding energy from renewable sources (SRE), of 42.5%, which for our country would mean an increase in the share of SRE to over 40% (11.1 GW photovoltaic and 11.4 GW wind), the 5 GW in CfD photovoltaic and wind projects contribute substantially to the achievement of national targets. In addition to the direct impact on the energy mix, supporting the development of clean technologies has considerable socio-economic benefits, given that every 1 euro invested brings a contribution to the economy of 1.3 euros, and every 1 million euros creates 6.1 jobs . In this sense, for Romania, the CfD mechanism supports the achievement of SRE energy targets, stimulates investments and increases the attractiveness of the market, simultaneously protecting the final consumer.
The RPIA and RWEA associations warn that in order for the mechanism to have the intended effect, a clear and transparent framework is necessary, which properly addresses the risks related to long-term investments and which ensures predictability, fundamental conditions for ensuring the financing necessary for the construction of projects which will fall under the scope of this mechanism.
