Supporting investment in new renewable electricity generation capacity (2)

Duration and budget of the scheme:

The implementation of this scheme shall start after the approval of its financing by the European Investment Bank, according to the provisions of the Government Emergency Ordinance no. 60/2022 on the establishment of the institutional and financial framework for the implementation and management of the funds allocated to Romania through the Modernization Fund, as well as for the modification and completion of some normative acts, with subsequent amendments, and shall apply until 31.12.2028.

The total estimated budget of the scheme is 500,000,000 euro, equivalent to approximately 2.5 billion lei, and represents non-reimbursable amounts from the Modernisation Fund for the period 2023-2028.

The budget of the scheme reflects the amounts allocated through the Modernisation Fund to Key Programme 1 – Renewable Energy Sources and Energy Storage.

The average annual budget of the scheme will not exceed EUR 150,000,000, with the budget allocated to each competitive tendering procedure being determined in each competitive procedure.

 

Action

Budget

(euro)

Realisation of new electricity generation capacities from renewable wind and solar energy sources, with or without integrated storage facilities

500.000.000

 

From which:

For projects with installed capacities greater than 1 MW (wind and solar energy)

200.000.000

For projects with installed capacities less than 1 MW (inclusive) (wind and solar)

300.000.000

 

The exchange rate of the European Central Bank valid on the first day of the year in which the contract is signed will be used to convert the aid granted to beneficiaries into lei.

 

The method of granting State aid

The support measures granted to beneficiaries for investments consist of grants from the Modernisation Fund through the reimbursement of expenses incurred.

The maximum aid that can be granted may not exceed EUR 20,000,000 per enterprise and per investment project. Undertaking means one or more legal entities forming a single economic unit, as defined in the Commission Communication on the concept of State aid referred to in Article 107(1) of the Treaty on the Functioning of the European Union. The analysis of the classification of undertakings forming a ‘single economic unit’ can be based on the declaration of the applicant undertaking on its own responsibility and on corporate documents proving the autonomy of the undertakings.

The maximum intensity of State aid granted under this scheme is 100% of the eligible costs and is based on a competitive bidding procedure which, in addition to the criteria set out in Article 7(1)(a), fulfils all the following conditions:

(a) the aid is granted on the basis of clear, transparent and non-discriminatory selection and eligibility criteria, defined ex ante and published at least six weeks before the deadline for applications, in order to allow effective competition;

b) the design of underbidding procedures during the implementation of the scheme is corrected to restore effective competition in subsequent bidding procedures;

c) ex-post adjustments to the outcome of the bidding procedure (such as subsequent negotiations on bid results or streamlining) are excluded;

d) the selection criteria used for the ranking of bids and ultimately for the allocation of aid are based primarily on the contribution to the objectives of the measure in direct or indirect relation to the amount of aid requested by the applicant. These criteria represent not less than 70% of the weight of all selection criteria;

e) the selection criteria may also cover, up to 30% of the weight of all the selection criteria, other aspects which are not directly or indirectly linked to the main objectives of the measure.

The difference up to the total value of the project shall be covered by the beneficiary. The beneficiary must make a financial contribution to the difference up to the total eligible costs either from its own resources or from sources attracted, in a form which is not subject to public aid.

 

Eligible expenditure:

Eligible expenditure shall be investment costs in renewable electricity generation capacity, including investment costs in electricity storage for installations with a renewable energy generation capacity of more than 1 MW, as set out in the Annex. Operating costs are not eligible.

After the conclusion of the financing contract, the beneficiary will not be able to receive financing from other public sources for the same eligible expenses of the project, under penalty of termination of the financing contract and return of the reimbursed amounts.

 

This scheme applies only to aid which has an incentive effect.

The aid is considered to have an incentive effect if the enterprise submits an offer to the authority responsible for administering this scheme for the granting of State aid prior to the start of the works.

 

Rules on cumulation of State aid:

 

For the same beneficiary and for the same eligible expenditure, State aid for investment granted under this scheme cannot be cumulated with any other State aid granted, including de minimis.

The State aid provider and the scheme administrator shall monitor the aid granted under this scheme in order not to exceed the maximum allowable intensity.

 

Indicative expenditure categories.:

 

  1. Indicative eligible expenditure

Categories of expenditure

Subcategories of expenditure

Expenditure on land improvement

Expenditure on land improvement

Expenditure on improvements for environmental protection and restoration to original state

Expenditure for the provision of the necessary utilities

Expenditure for the provision of the necessary utilities

Expenditure for design and technical assistance

Expenditure on payment of site supervisors

Expenditure on basic investment

Expenditure on construction and installations

Expenditure on equipment (machinery, equipment with and without installation, fittings)

Expenditure on intangible assets

Expenditure on site organisation

Expenditure on construction work and installations relating to site organisation

Expenditure related to site organisation

Miscellaneous and unforeseen expenditure

Miscellaneous and unforeseen expenditure

Expenditure on technological trials and tests and handover to beneficiary

Expenditure on the training of operating staff

Expenditure on technological trials and tests

 

  1. Categories of ineligible expenditure

 

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

– expenditure relating to contributions in kind;

– depreciation costs;

– land acquisition costs;

– leasing costs;

– rental costs other than those provided for under general administrative expenses;

– expenditure on the purchase of means of transport;

– general administrative expenses;

– expenditure on commissions, rates, taxes;

– expenditure on the purchase of buildings already constructed;

– value added tax;

– interest on debt;

– other charges relating to loans;

– purchase of second-hand equipment;

– fines, penalties, court and arbitration costs;

– costs of operating investment objectives;

– expenditure on own-account investment objectives;

– expenditure on connections to the substation;

– expenditure on preparatory work, such as obtaining permits and authorisations, feasibility studies (and technical studies required by standards and regulations for project preparation);

– other general expenses (e.g. publicity, information, financial audit, project management).

The maximum aid intensity is 100% of eligible costs.

 

Legal basis:

MADR Order 70/2023 for the approval of the State aid scheme to support investments in new capacities for the production of electricity from renewable sources for self-consumption by enterprises in the agricultural sector and food industry.

– https://www.madr.ro/