Romania: Lack of PPAs could endanger country’s energy security

, SEE Energy News

As a result of lack of PPAs, private investments in the field of electricity generation have decreased dramatically in the last few years.

The Coalition for the Development of Romania (CDR) pointed out the importance of unblocking the legislative framework to stimulate investments in new electricity generation capacities by ensuring the right of investors to sign long-term negotiated bank contracts outside the centralized market.

CDR considers that by adopting the Government Emergency Ordinance 74/2020, the process of alignment and concordance of the primary legislation in Romania with the provisions of Regulation (EU) 943/2019 has started.

However, the draft law adopted by the Romanian Senate earlier in June repeals this provision, instead of unconditionally extending it to all participants in the electricity market and regardless of the year of commissioning of production capacities, which creates a major risk of expansion of the blockage of the last 8 years, especially given that the investment situation in the sector is still stagnant.