Acasă » Electricity » Gov’t prepares green funding via Modernisation Fund: over 1.5 bln. euro for companies and local authorities

Gov’t prepares green funding via Modernisation Fund: over 1.5 bln. euro for companies and local authorities

14 March 2023

The Ministry of Energy is preparing one of the most eagerly awaited green energy funding programmes in Romania, with a multi-year allocation of over €1.5 billion. The Modernisation Fund provides companies and local authorities with non-reimbursable funds for investments in renewable energy solutions, according to REI Group.

According to the guidelines launched for public consultation last autumn, applicants can obtain up to €20 million in non-repayable support per investment project, both for alternative energy production (solar, wind, biomass, biogas, hydrogen or hydro) and for self-consumption.

“We look forward to a consolidated and final version of the Guide in April, most likely, so that we can provide the best possible guidance to clients on how to submit a complete and well-documented project in this year’s most anticipated renewable energy funding session. The Modernisation Fund is part of a new, generously budgeted series of grants that will run until 2030. Following the success of the C6 – NRRP and the LOIP, the Modernisation Fund is the biggest support solution for companies and public authorities looking to invest in green energy. We advise both local authorities and developers of photovoltaic parks to speed up the preparation of feasibility studies and take the necessary steps to obtain the TPA. We have discussions for large and very large projects – both local and international players – which, through planned investments, will put Romania among the countries with the largest renewable energy resources at European level,” said Dan Bold, Business Development Manager, REI Grup.

According to REI data, the Ministry of Energy will launch the final version of the Green Energy Investment Sessions Guidelines in April and the calls for funding will most likely open in May.

Romania has the potential to be one of the countries with the highest installed renewable energy capacity in Europe. We’re in the top 10 for alternative energy consumption

Electricity production from renewable sources increased by 5% in 2021, while the share of green energy in total consumption at European level reached 37.5%, Eurostat data show, which places Romania  in the top 10 in terms of alternative energy consumption.

More than 40% of Romania’s energy consumption is produced from renewable sources, which is above the European average and ahead of much more developed countries such as Italy, France and Poland.

The top countries with the highest renewable energy consumption are Austria (76.2%), followed by Sweden (over 75%) and Denmark, with Portugal and Croatia rounding out the top three.

“The pipeline of renewable projects from wind, but especially photovoltaic sources, indicates real chances for Romania to enter in the top at European level, both for production and consumption of green energy. If by 2025 we expect at least 3,000 MW of green energy from solar sources to be installed and operational, the commitment made by the authorities is that by 2030 the total capacity of green energy projects will be tripled, to over 10,000 MW, with most of the projects being supported by non-reimbursable financing solutions from the NRRP and the Modernisation Fund. Moreover, private projects will also play a key role, with the possibility of seeing more than 20,000 MW of renewable energy solutions installed in the coming years,” Dan Bold added.

The European Commission has pledged that by 2030 a 40% reduction in greenhouse gas emissions, a more than 30% increase in energy efficiency for all Member States, and almost a third of energy consumption to be produced by green energy solutions.

In the long run, the European Commission’s ambition is for all Member States to become climate neutral by 2050.

“The transition to a climate-neutral society is both an urgent challenge and an opportunity to build a better future for all,” the EC plan states.

The European Council endorsed in December 2019 the goal of making the EU climate neutral by 2050, in line with the Paris Agreement.

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