Romanian electricity transmission system operator Transelectrica informed the market participants that it plans to conclude bilateral power purchase agreements (PPA) through which it will buy electricity from local producers to cover its technological consumption.
The statement from the company said that it intends to enter into medium-term and long-term contracts for the purchase of electricity, concluded directly with producers or suppliers, for electricity from new generation capacities, put into operation after 1 June 2020. Thus, Transelectrica would become the first Romanian company to purchase of electricity through direct bilateral agreements from new producers. In theory, these producers should be from the renewable energy sector.
Several large renewable energy projects, especially solarones, already have technical approval for the connection to the transmission network issued by Transelectrica, which should start production next year. These investors could be among the first to qualify to sell electricity to Transelectrica through PPAs.
Investors have been calling for years to allow the conclusion of long-term, direct bilateral agreements, which was made possible only in 2020. Such a contract makes it easier to obtain funding for new energy projects.