Over EUR 800 M in Non-Reimbursable Funds for Green Energy Investments through the Modernisation Fund Programme

More than EUR 800 million in non-reimbursable funds for investments in green energy projects will be available within the next few weeks, where companies will be able to increase the energy efficiency of their factories or new renewable energy production units will be installed throughout the country, according to REI, a group of companies specialized in attracting EU and state aid funds, one of the leading consulting firms in Romania.

The Modernisation Fund provides companies with a total budget of €815 million for investments in renewable energy, both in a scheme dedicated to consumption efficiency through the installation of photovoltaic panels (with an allocation of €415 million) and in the production of green energy from various sources (with an allocation of €400 million).

“This is a unique opportunity because the allocation is very generous and market demand is growing at an accelerated pace. Factories, retailers and other consumers cannot miss this opportunity as the deadline for ending the energy price cap approaches. We are in talks for large and very large projects in green energy production and we are convinced that the money from the sale of CO2 certificates can put Romania on the map of Europe’s major renewable energy producers”, Roxana Mircea, managing partner of REI Grup said.

The Ministry of Energy has published during January the advisory guidelines[1] for both calls (self-consumption and green energy production), with most of the funds going to solar panel investments.

1. Supporting investment in new renewable electricity generation capacity for own consumption – EUR 415 million

Companies applying for non-reimbursable funding for their own consumption will have a total of €415 million at their disposal, of which more than 85% is earmarked for investments in increasing energy efficiency with solar panels, followed by wind energy (€30 million) and last but not least hydro (€25 million).

“In this case, we are talking about a cost standard of €1 million for projects below 1 MW and €500,000 for those with installed capacity above 1 MW. We recommend companies, in cases where they are slightly above 1 MW installed capacity, to apply for 0.99 MW in order to benefit from a higher grant. We estimate that for projects up to 1 MW a grant of around €350-375,000 and for projects above 1 MW only €250-300,000/MW. In addition, companies must submit 12 consecutive invoices and strictly on the basis of these invoices the installed capacity of the new PV plant is calculated”, Roxana Mircea said.

2. Supporting investments in new renewable electricity generation capacity – EUR 400 million

Developers of photovoltaic projects that are feeding energy into the grid will benefit from a maximum cost standard of €500,000.

The total estimated budget amounts to €400 million, of which €200 million for solar, wind (€100 million) and hydro (€100 million).

“Companies applying for a grant of €100-150,000/MW could win or the grant could even be reduced to €60-70,000 if 10 large projects of 250-300 MW win and take up the entire €200 million budget allocated to solar energy”, Roxana Mircea added , who stressed that in this case, too, the principle of “who asks for the least €/MW” will prevail.

Eligible applicants for both calls can be start-ups, micro-enterprises, SMEs, as well as large enterprises, and an investment project will benefit from a maximum of €20 million/investment:

Key requirements for applicants:

• Applicants must have the activity of electricity generation – NACE class 3511 – Energy Production, listed in the company’s articles of association as a principal or secondary activity;
• Newly established companies must have a paid-up subscribed share capital of at least 100,000 lei;
• A Feasibility Study is required when submitting the project;

“We recommend that all companies start preparing the documentation as soon as possible, with authorised, experienced project designers and consultants who guarantee the successful implementation of projects. Once the projects have been submitted to the Ministry of Energy, they can be implemented, the photovoltaic plants can be installed, but only after a procurement procedure that follows the instructions given by the Authority”, Roxana Mircea, managing partner REI Grup, added.

Project development stages:

• It is established which is the real right on the land (ownership, concession, surface);
• geo-topographic studies are developed;
• an urban planning certificate is required;
• an application is submitted to the Ministry of the Environment.

Important! Solution studies are carried out by companies authorised by the energy distributors and take about 4-6 months to prepare, while an TCN (Technical Connection Notice) for projects below 5 MW can take 9 to 12 months.

[1] https://energie.gov.ro/category/fondul-pentru-modernizare/