The Romanian Government has launched a public consultation on a draft amendment to Government Decision no. 318/2024, which defines the general framework for the Contracts for Difference (CfD) scheme supporting low-carbon technologies. The proposed changes apply both to projects that have already secured CfD contracts in the first auction round and to those preparing for the second call, introducing substantial refinements to the contractual architecture. These changes directly impact project bankability, financial predictability, and the enforceability of sustainability principles.

Direct creditor access to CfD flows – a milestone for bankability

One of the most impactful revisions is the introduction of a “Direct Agreement” mechanism that allows lenders to access CfD payment flows directly. Under this tripartite contract (between the producer, OPCOM, and creditor representatives), payments owed to the producer can be redirected to accounts designated by financing institutions. At the same time, creditors gain defined step-in rights in case of default or project delays, while producers remain fully accountable for contractual obligations. This structure enables enforceable collateralization, unlocking a more secure recovery path for institutional lenders.

To support this enhanced framework, the revised rules also require producers to issue a Good Performance Guarantee in RON, within 15 working days of CfD contract signing, calculated based on the awarded capacity and the auction price.

DNSH compliance becomes a contractual obligation – and is subject to oversight

Another pivotal update is the formal integration of the DNSH (Do No Significant Harm) principle into the CfD contract itself. Previously treated as a supplementary eligibility requirement, DNSH compliance is now embedded in the contract and legally binding throughout the lifecycle of the project. OPCOM, acting as the contracting authority, is granted monitoring powers to ensure ongoing alignment with EU taxonomy requirements.

Each project must submit a DNSH Compliance Statement and a detailed self-assessment covering six environmental objectives: climate change mitigation and adaptation, water and marine resource protection, circular economy, pollution prevention, and biodiversity conservation. These obligations extend across procurement, construction, operation, and decommissioning stages. Adherence to DNSH principles becomes a contractual condition for receiving CfD support and maintaining eligibility throughout implementation.

Further clarifications: eligible capacity, payment conditions, and indexation rules

The draft legislation also introduces several important legal and financial clarifications:

• Eligible capacity redefined: Only assets explicitly identified in the technical offer and located within the authorized project perimeter qualify for CfD support. Grid connection equipment and auxiliary assets not directly involved in electricity generation and delivery are excluded.
• Payment start conditions clarified: The CfD contract introduces flexibility for determining the Payment Start Date. If certain permitting steps become obsolete under revised legislation, they may no longer be required – a provision aimed at resolving regulatory bottlenecks.
• Strike price indexation mechanism introduced: The strike price may be adjusted every three years if the Eurostat CPI exceeds 10%. The adjustment process is predefined, with notification required within 15 days and implementation confirmed within three working days.

More legal certainty, more environmental responsibility

By adopting these amendments, the Romanian Government aims to strengthen the legal and financial foundation of the CfD mechanism, aligning it with the sustainability criteria expected by European and international lenders. The revised framework reduces legal uncertainty, introduces enforceable revenue streams for creditors, and enhances project bankability.

At the same time, it raises the bar on environmental accountability. The integration of DNSH as a binding contractual clause requires developers to adjust procurement strategies, technical documentation, and operational practices in line with EU environmental policies.

The next step is clearly defined: within 30 days after the new decision enters into force, all existing CfD contracts must be updated to reflect the amended provisions. For new participants in the upcoming auction rounds, this added clarity could be the difference between a bankable project and a stalled one.

The draft Decision on the approval of the general framework for the implementation and operation of the CfD mechanism, as well as the other documents – Annex 1 (Model of DNSH Declaration and self-assessment), Annex 2 (Model of the direct contract between the producer, OPCOM and creditors) and the explanatory note are available on the website of the Ministry of Energy.