Correggio Digest Archive

Romania
Institution

Government

Act / Decision / Ruling

PPAS ALLOWED AGAIN, BUT ONLY FOR NEW INVESTMENTS IN ELECTRICITY GENERATION

Relevant Date

14/05/2020

Electricity generation capacities commissioned after 1 June will be eligible to sign long-term bilateral contracts for the sale of electricity. This comes eight years after all directly negotiated power purchase agreements (PPAs) on the Romanian electricity market were banned and all electricity had to be sold on the centralised market, OPCOM.

This new PPA framework, however, laid down in Government Emergency Ordinance 74/2020, does not apply to existing projects.

The re-introduction of PPAs is a first step towards compliance with the new Electricity Regulation (Regulation (EU) 2019/943),  in force since 1 January, and is also part of the commitment Romania has made to the European Commission to deregulate its electricity market from 1 January 2021. The  impact of this move is high, as it will rejuvenate investments in electricity generation, especially in the renewables sector.

However, the fact that PPAs are still not allowed for existing generation capacities may be contrary to the new Electricity Regulation and thus, may be something that the Romanian Parliament would have to change in the near future.

MORE INFORMATION AT:

http://legislatie.just.ro/Public/DetaliiDocument/225913