Romania will soon launch its first auction for a contract-for-difference (CfD) support scheme for renewable energy, under which onshore wind power projects and solar photovoltaic (PV) projects with a total capacity of 2,000 MW will be backed for 15 years, the European Bank for Reconstruction and Development (EBRD) said on last Friday.

The country will tender 1,000 MW of onshore wind power and 1,000 MW of solar PV power capacity, in line with its Recovery and Resilience Plan milestones and renewable energy targets, the EBRD said in a press release.

"The EBRD is working together with the Ministry of Energy and other Romanian authorities to create the necessary legal and regulatory framework for the CfD support scheme and to implement the competitive tender process for the first round of auctions in 2023," the bank added.

Successful bidders are expected to be announced in November 2023.

The two-way CfD scheme incentivises investments in renewable energy by providing revenue stability to developers and strengthening the market integration of renewables, the EBRD explained.

"This new CfD scheme awarded through auctions is critical to unlocking private-sector investment and to ensuring the transition to a resilient and green energy sector," said Mark Davis, EBRD Regional Head of Romania and Bulgaria.