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MADR: Renewable energy production financing scheme for the agricultural and food sector

25 May 2023

On May 12, 2023, the Order of the Ministry of Agriculture and Rural Development no. 70/2023 establishing a new state aid scheme, financed from the Modernization Fund, with a total budget of 500 million euro that will be implemented in the period 2023-2028, according to EY.

Based on this scheme, several calls for projects will be launched, with an average annual budget of 150 million euro, with the aim of financing new solar and wind energy production capacities, as well as the energy storage capacities produced by these installations.

Eligible beneficiaries are companies that carry out activities based on CAEN classes 01 – Agriculture, hunting and related services, 10 – Food industry and 11 – Manufacture of beverages. They must consume at least 70% of the energy produced by the new installations.

Up to 1 million euro/MW for solar projects

The maximum amount of non-reimbursable financing varies depending on the technology and the installed power, the ceiling being 1,000,000 euro/MW for photovoltaic plants of a maximum of 1 MW, and 500,000 euro/MW for photovoltaic plants with a power greater than 1 MW. For wind power, the caps are 40% higher in each of the two power segments.

The main criterion for judging the projects will be the value of the requested grant, with the highest score being given to the projects requesting the lowest grant per MW. This criterion will weigh 70% of the total score. The other criteria will be defined in the Applicant’s Guide, to be published by the Ministry of Agriculture. So far, no timetable has been announced for the launch of the first call, but the approved order states that the roll-out and implementation of the scheme will begin after the approval of its financing by the European Investment Bank, EY officials also said.

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