Presentation
The general framework for the implementation and functioning of the Contracts for Difference support mechanism for low carbon technologies is established by Government Decision No. 318 of April 4, 2024, published in the Official Gazette of Romania, Part I, No. 333/10.04.2024.
The Contracts for Difference Mechanism is a mechanism which ensures support for the development of low carbon emission electricity generation capacities. The eligible electricity production technologies are those that utilize:
- a) onshore wind;
b) offshore wind;
c) solar photovoltaic;
d) hydro;
e) nuclear;
f) hydrogen;
g) energy storage;
In case of CfD schemes, the CfD contracts are granted to applicants through their participation in a CfD auction, depending on the outcome of the auction. Thus, Contracts for Difference will be offered to eligible producers through a competitive auction process, conducted by the CfD scheme Operator (CNTEE Transelectrica S.A.).
In case of ad-hoc CfD state aid, the competent ministry (Ministry of Energy), with the assistance of the CfD Counterparty (OPCOM S.A.), may grant ad-hoc CfD contracts for electricity production projects for which a competitive selection process cannot be applied.