Information for Participants: CfD Auction Process

The Contract for Difference (CfD) auction is a competitive bidding process aimed at supporting the development of energy projects through long-term contracts. The following is a detailed schedule and key steps for participants interested in the upcoming CfD auction:

Key Dates and Processes:

 

1. Eligibility Criteria for Applicants:

1. Legal Structure:
   The applicant must be a legally established entity according to the laws of the country in which it is headquartered. If the applicant is a Romanian entity, the primary or secondary activity in its statutory documents must include electricity production, corresponding to CAEN code 35 (production and supply of electricity, thermal energy, gas, hot water, and air conditioning), specifically CAEN 35.1.1 (electricity production).
2. Relevant Experience:
   The applicant must demonstrate experience in developing, constructing, or operating comparable energy projects, either in Romania or globally, within the last 10 years. Comparable projects refer to those using the same technology (onshore wind or solar photovoltaic energy production).
3. Compliance with Legal Requirements:
   The applicant must meet all requirements stipulated in Article 5 of the CfD scheme, which includes regulatory and financial criteria.

2. Eligibility Criteria for Projects:

1. Location:
   The project must be implemented within Romania.
2. Technology and Capacity:
   The project must involve new energy production capacities using onshore wind or solar photovoltaic technologies. The minimum installed capacity for participation is 5 MW.
3. Start of Works:
   The project must not have begun work before March 9, 2023, or earlier than July 20, 2022, depending on the type of project. Preliminary activities such as acquiring land or obtaining permits are not considered the start of construction.
4. Technical Connection:
   The project must secure a valid technical grid connection approval within six months of signing the CfD contract.
5. Completion Timeline:
   The project must have a target commissioning date that does not exceed 36 months from the anticipated signing date of the CfD contract.

3. Requirements for Consortia:

1. Consortium Structure:
   If the applicant is a consortium, it must provide a detailed structure with the member leading the consortium holding at least 20% participation.
2. Unified Representation:
   Each consortium member must submit an authorization allowing the leading member to represent the consortium in the bidding process.
3. Eligibility of All Members:
   Each consortium member must individually meet the eligibility criteria outlined in the CfD scheme.

4. Financial Submission Requirements:

1. Financial Offer:
   Applicants must submit a financial offer indicating a strike price (not exceeding 82 EUR/MWh for onshore wind projects and 78 EUR/MWh for solar photovoltaic projects).
2. Funding Proof:
   Applicants must provide verifiable proof of financing for the total project value. This could include letters of financial support from a bank or financial institution with a minimum BBB rating or approval from the applicant’s board.

5. Additional Documentation:

1. Organizational Details:
   The application must include a detailed organizational chart showing the ownership structure and control of the applicant, including any shareholders or stakeholders.
2. Guarantees:
   A participation guarantee of 20,000 EUR/MW for the proposed capacity must be submitted. Winning applicants must later provide a performance guarantee of 75,000 EUR/MW.
3. Ownership Confirmation:
   If a special purpose vehicle (SPV) is designated to sign the CfD contract, the applicant must provide proof of full ownership of the SPV.

6. Application Submission Format:

1. Submission Components:
   Applications must include a technical offer and a financial offer, submitted simultaneously in separate sealed envelopes.
2. Technical Offer:
   The technical offer must demonstrate the project’s viability, including the proposed installed capacity, target commissioning dates, and estimated energy output.
3. Financial Offer:
   The financial offer must clearly state the strike price and any other required financial details.
4. Digital Format:
   Both technical and financial offers must be submitted in both physical and digital formats (USB sticks with password-protected files).

7. Compliance with Legal and Environmental Regulations:

Applicants and their projects must adhere to all applicable legal and regulatory standards, including ensuring that neither the applicant nor its stakeholders are subject to international sanctions.

Conclusion

Participants in the CfD auction are advised to carefully adhere to this timeline to ensure a smooth and successful bidding process. Missing key deadlines could result in disqualification or missed opportunities. Ensure that all documents and offers are submitted correctly and on time to maximize the chance of winning a CfD contract.