How to produce energy with EU funds. Everything you need to know about non-reimbursable energy funding

An article of incomemagazine.ro

It is well known that the renewable energy sector is increasingly attractive, and the investments being made are growing larger and more diverse. There is a less talked-about aspect, namely non-reimbursable funding programs for renewable energy. Income Magazine spoke with expert Anca Rusu, partner at the law firm Berechet Rusu Hiriț SPARL, who explained the funding programs, how to attract the funds, and the amounts that can be obtained.

Income Magazine: What are the main non-reimbursable funding programs for renewable energy, and who are they aimed at?

Anca Rusu: The main non-reimbursable funding programs for renewable energy are Romania’s National Recovery and Resilience Plan (PNRR) – Component C.6. Energy, and the Modernization Fund. Both funding instruments are managed by the Ministry of Energy and aim (among others) to support investments intended for developing new capacities for electricity production from renewable sources, including storage facilities and capacities for green hydrogen production.

The PNRR is a European financing project designed to help member states recover losses recorded during the pandemic and subsequently those generated by the energy crisis. The funds allocated to each member state include grants (non-reimbursable funding) and traditional loans. It is essential to note that the PNRR financing mechanism is limited until December 31, 2026, by which time member states are expected to recover economically using these funds. From this European financing project, Romania is allocated 28.5 billion euros, of which approximately 14.9 billion euros are non-reimbursable funds. For Component C.6 Energy, including renewable energy projects, a budget of 1.62 billion euros has been allocated.

In contrast, the Modernization Fund has an implementation period until 2030 but is only available to member states with a GDP per capita below 60% of the EU average (including Romania). The sources for the Modernization Fund come from revenues generated by auctioning 2% of greenhouse gas emission certificates (EUA) at the EU level during 2021-2030, with Romania being allocated 11.98% of the total 2%, which is estimated to amount to 13 billion euros.

Read the full article in Romanian on incomemagazine.ro