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Financing new projects for renewable energy production

On 30th March 2022, the Ministry of Energy launched a new state aid scheme to support investments in new renewable electricity generation capacity (wind and solar) with or without integrated storage facilities. The project budget is EUR 457,700,000 with Romania’s National Recovery and Resilience Plan funding.

Projects are eligible if they cumulatively meet the following conditions:

to be implemented in Romania;

to target the development of new electricity generation capacity from wind/solar energy, with or without integrated storage facilities as a secondary activity, with storage accounting for a maximum of 20% of the state aid amount;

to have installed capacity proposed to be achieved by the project of more than 0.2 MW for wind and solar power generation;

investments to be completed, respectively installed and connected to the National Energy System, including commissioning by the end of the second quarter of 2024 at the latest;

not to seek to replace older wind and solar power generation capacity or expand electricity generation units.

Also, to benefit from the state aid scheme, legal entities must cumulatively fulfil the following requirements:

have the quality of micro-enterprises, small and medium-sized enterprises, as well as big, newly established enterprises, legally incorporated by the specific legislation of the member state of which they are nationals, provided they are registered with the National Trade Registry of Romania;

the principal or secondary object of activity, mentioned in the articles of association, is the activity relating to the production of electricity (for sale or own consumption within the company or group of companies – NACE class 3511 – ‘Production of electricity);

are not in default/insolvent;

are not bankrupt or being wound up, are not having their affairs managed by a liquidator, have not suspended business activities, are not the subject of an arrangement with creditors, are not in a similar situation as above, as determined by law, or are not the subject of proceedings for a declaration that they are bankrupt or being wound up, are not having their affairs managed by a liquidator;

have fulfilled their obligations to pay taxes, duties and social security contributions to the component budgets of the general consolidated budget;

are not declared in severe breach of the provisions of public procurement legislation and/or of the obligations assumed under a public procurement contract/funding agreement;

the applicant/legal representative of the applicant has no definitive convictions for professional conduct against the law;

the applicant/legal representative of the applicant has not been convicted of fraud, corruption, involvement in criminal organisations or any other illegal activity detrimental to the European Community’s financial interests;

are not subject to an unenforced recovery decision of the Competition Council, the European Commission, a state aid provider/manager or the court, by which state aid has been declared illegal and incompatible with the internal market;

are not companies in difficulty as defined in Article 2 item 18 of Commission Regulation (EU) No. 651/2014 of 17th June 2014 declaring specific categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.

The amount of state aid granted under the scheme per MW installed is maximum:

for wind energy projects:

1,300,000 Euro/MW – for installed capacities between 0.2 MW (exclusive) and 1 MW (inclusive);

650,000 Euro/MW – for installed capacities exceeding 1 MW;

for solar energy projects:

750,000 Euro/MW – for installed capacities between 0.2 MW (exclusive) and 1 MW (inclusive);

425,000 Euro/MW – for installed capacities exceeding 1 MW.

State aid is up to EUR 15,000,000 per company, per investment project, and applications can be submitted until 31st May 2022.

 

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