Romanian Photovoltaic Industry Association (RPIA) and the Romanian Wind Energy Association (RWEA) representing producers, developers, service providers and equipment suppliers in the renewable energy sector, with a total installed power of over 5.5 GW, urgently request authorities fair access of the photovoltaic and wind industry to the Contracts for Difference (CfD) mechanism.
Recently, we are witnessing a systematic attempt on the part of certain authorities and entities involved in different stages of the approval and authorization process, which seems to deliberately and unjustifiably restrict the development of new renewable energy (RES) production capacities through actions that do not let market mechanisms work. The recent statements about the intention to change the fair allocation originally proposed for the first auction under the CfD mechanism (1 GW solar, 1 GW wind) based on erroneous assumptions (more precisely, the existence of projects financed from both the PNRR and the Modernization Fund), do not they do nothing but reinforce such assumptions and compromise one of the few chances we have as a country to achieve our commitments at European level.
Not only that, but such a late change, shortly before launch, jeopardizes the viability and success of the entire scheme. At the moment, neither the industry, nor the market participants, nor the authorities have a complete picture of the number of MW supposed to be under development, financed by European funds, given that there is no verification mechanism. As a result, in the context of this total lack of transparency, it is unclear how the market could be “congested” given that the pace of project work is still very slow. RES development is a competitive process involving a number of factors, such as economic considerations, land availability, environmental impact and securing grid connection, against the backdrop of an unpredictable legislative framework. Therefore, the existence of some projects that won calls for European funds is not an indicator of the number of MW that will be built and operational.
Moreover, the works for high-capacity SRE projects, essential for energy independence and security, but also for reaching the climate neutrality targets assumed at the national level, have not been started until now. One of the main reasons is that investors believed – and continue to believe – in the promise of the Romanian authorities that CfD will be operationalized in 2024, in the originally assumed weight, demonstrated by the approximately 15 GW eligible.
However, they cannot remain indifferent to a new strong negative signal, in addition to the long line of market interventions and countless blockages.
We have repeatedly emphasized the urgent need for a signal of stability that only such a mechanism can give. In the context in which Romania should have a total installed capacity in photovoltaic and wind parks of 6.1 GW and 10.5 GW respectively by 2030 to align with the climate targets, any “in-game” modification of the premises affects the applicability CfDs. We reiterate, in this way, that the forms of support – existing and future – are not mutually exclusive, but are complementary.
