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FUND FOR MODERNIZATION. SUPPORTING INVESTMENTS IN NEW ELECTRICITY PRODUCTION CAPACITIES PRODUCED FROM RENEWABLE SOURCES

FUND FOR MODERNIZATION. SUPPORTING INVESTMENTS IN NEW ELECTRICITY PRODUCTION CAPACITIES PRODUCED FROM RENEWABLE SOURCES

Final guide – 5 April 2024

The overall objective

Increased production of electricity from renewable sources through the installation of new capacities for the production of energy from renewable sources, contributing to the achievement of the objectives assumed by Romania within the PNIESC and FM - Key Program 1: Renewable energy sources and energy storage.

The allocated budget

The estimated total budget is the equivalent in lei of the amount of 400,000,000 euros and represent non-refundable amounts from the Modernisation Fund, broken down as follows:

Actions:

  • For wind power, all capacities – 100,000,000 euros
  • For solar energy, 200,000,000 euros, of which:
  • Under 5 MW (inclusive) – 120,000,000
  • Over 5 MW – 80,000,000
  • For hydro energy, all capacities – 100,000,000 euros

The amount of state aid requested per installed MW is a maximum of:

  • Wind power: 700,000 Euro/MW – for all capacities
  • Solar energy:
  • 450,000 Euro/MW – for installed capacities up to 5 MW (inclusive)
  • 360,000 Euro/MW – for installed capacities of over 5 MW
  • Hydro energy: 1,805,000 Euro/MW – for all capacities

Financing rate – 100% of eligible expenses, with a maximum value of 20,000,000 euros / enterprise

Project proposal submission period: 25.04.2024 – 25.07.2024

Eligible applicants

Applicants must cumulatively meet the following institutional, legal and financial conditions:

  • The applicant has legal personality, is legally constituted in accordance with national legislation or in accordance with the specific legislation of the member state whose nationality he holds and registered with ONRC in Romania until the date of the first payment from the state aid granted
  • The applicant operates in an eligible sector
  • The applicant falls into one of the following categories: micro-enterprise/small enterprise/medium-sized enterprise/large enterprise (including start-ups)/self-employed
  • The applicant does not fall into one of the situations: inability to pay/insolvency, bankruptcy, liquidation, etc.
  • The applicant demonstrates financial capacity to support the implementation of the project, including the storage facility, if applicable.

Fundable activities

  • The purchase of new installations/equipment for the construction of new electricity production capacities from renewable wind, solar or hydro energy sources;
  • Constructions that are the object of the project to produce electricity from renewable sources of wind, solar or hydro energy.

Eligible expenditure categories (examples):

  • Land development expenses
  • Expenses for providing the utilities necessary for the objective
  • Expenses with the payment of site managers
  • Construction and installation expenses
  • Expenses for the installation of machinery, technological and functional equipment
  • Expenses with machines, technological and functional equipment that require installation
  • Equipment expenses
  • Expenditure on intangible assets
  • Expenses for construction works and installations related to site organization
  • Expenses related to the organization of the construction site

The following types of expenses are NOT eligible (the list is not exhaustive):

  • Depreciation expenses
  • Land acquisition costs
  • Expenses related to the purchase of goods in the form of leasing
  • Expenses with the purchase of means of transport
  • Expenditure on the purchase of already built real estate
  • Connection costs (connection to the transformer station)
  • Expenditures for preparatory works, such as obtaining approvals and authorizations, carrying out feasibility studies (and technical studies established by standards and regulations for the preparation of the project).