European money to support the Contracts for Difference scheme

The central authorities in Bucharest received 1.09 billion euros from the European Union, through the Modernization Fund, for the financing of contracts for difference (CfD), through which the price of electricity will be fixed for a period of 15 years. This price will be indexed only to the inflation rate in the euro area, regardless of how the European market will evolve, the financing scheme will be reflected in the invoices issued over the 15 years. For CfDs, the Romanian state will organize public procurement procedures, with separate bids for the wind and photovoltaic sectors, for capacities of 5,000 MW, within which the beneficiaries will also propose an exercise price in addition to the project. The maximum starting prices will be 91 euros/MWh for photovoltaics and 93 euros/MWh for wind turbines.

The amount granted to Romania by the European Commission from the Modernization Fund is the largest, if we take into account that the remaining 1.87 billion euros is divided among 9 EU member states: Bulgaria (65.2 million euros), Croatia (52 million euros) , Czech Republic (835.2 million euros), Estonia (24.1 million euros), Hungary (76.8 million euros), Latvia (26.8 million euros). million), Lithuania (59 million euros), Poland (697.5 million euros) and Slovakia (35 million euros).

Through the 2.967 billion euros paid through the Modernization Fund, 39 energy projects in the 10 EU member states are supported, more precisely the modernization of energy systems, the reduction of greenhouse gas emissions in the energy, industry and transport sectors and the improvement of energy efficiency. These investments help Member States meet their climate and energy targets and contribute to the EU's long-term goal of achieving climate neutrality by 2050.

Supported projects focus on the generation of electricity from renewable sources, the use and deployment of renewable energy sources, the modernization of energy networks and energy efficiency.

We remind you that the Modernization Fund helps thirteen Member States with lower incomes in their transition to climate neutrality. The beneficiary Member States are Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Greece, Portugal and Slovenia. The modernization fund applies for the period 2021-2030. The fund for modernization is made up of the revenues obtained by auctioning on the market 2% of greenhouse gas emission certificates (GHG) at the EU level, for the period 2021-2030 and Romania has allocated a percentage of 11.98% of the total of 2%. More than 16 billion euros could be made available from the Modernization Fund until 2030, and 1.62 billion euros, excluding VAT, from the PNRR, an amount that must be used until June 30, 2026.