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New state aid schemes for financing investments in green energy

On April 25, 2024, the Ministry of Energy launched the call for projects for two new financing schemes totalling over EUR 800 million to support the development of new onshore wind, hydro, and solar photovoltaic power generation capacities to be granted based on a competitive bidding procedure.

The first state aid scheme, approved by Order of the Minister of Energy no. 353/05.04.2024 supports investments for the development of new energy production capacities from renewable sources, namely wind, solar, or hydro, with an estimated budget of EUR 400 million, allocated as follows:

EUR 100 million each for wind and hydro;
EUR 200 million for solar energy, out of which EUR 80 million for capacities exceeding 5 MW and EUR120 million for capacities up to and including 5 MW.

To be eligible, the project must aim to build new energy generation capacities using one of the three sources mentioned above, the aid being capped per installed MW, as follows:

Wind energy: 700,000 EUR/MW — for all installed capacities;
Solar energy: (i) 450,000 EUR/MW — for installed capacities up to and including 5 MW, respectively (ii) 360,000 EUR/MW — for installed capacities exceeding 5 MW;
Hydropower: 1,805,000 EUR/MW — for all installed capacities.

However, the maximum state aid that can be granted to a project cannot exceed EUR 20 million per applicant per project, and the financing cannot be cumulated with other state aid.

According to the application assessment grid, to obtain the highest possible score, applicants must (i) cover a large part of the investment from their funds so that the public subsidy offered per installed MW is the lowest and overcompensation is avoided (maximum 90 points out of 100) and (ii) have storage capacity that allows the storage of energy produced (at the nominal capacity of the RES plant) for a period of minimum 12 minutes (maximum 10 points out of 100). Expenses and activities regarding the purchase and installation of storage capacities are not eligible under the state aid scheme.

In terms of eligible beneficiaries, the funding can be accessed by new companies or already existing ones, micro, small-medium, or large, registered in Romania or another Member State and registered with ONRC in Romania until the date of the first payment of state aid and which, among other conditions, do not have as main or secondary activities the following NACE codes:

NACE code 01 — Agriculture, hunting, and related services;
NACE code 10 — Food industry;
NACE code 11 — Manufacture of beverages.

The second state aid scheme, approved by Order of the Energy Minister no. 355/05.04.2024 supports investments for the development of new energy production capacities from renewable sources, namely wind, solar, or hydro, for self-consumption, with an estimated budget of EUR 415 million, allocated as follows:

EUR 360 million for solar energy, out of which EUR 144 million for capacities exceeding 5 MW and EUR 216 million for capacities up to and including 5 MW;
EUR 30 million for wind energy;
EUR 25 million for hydropower.

Apart from the budget allocation, the eligibility conditions for applicants, projects, and expenses are similar to those in the first funding scheme described above.

 

Those interested can submit their projects by July 23, 2024, at 17:00 through the electronic platform dedicated to MySMIS2021, which can be accessed at https://mysmis2021.gov.ro/.

Additional information is available on the Ministry of Energy website at this link.

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