Romania introduces new state aid scheme to support geothermal development
Romania has introduced a new EUR100 million government support scheme for the development of new capacity or refurbishment of existing capacities for production of electricity or thermal energy from biomass, biogas or geothermal energy.
Shared by Romanian law firm Volciuc-Ionescu SCA, an article in Lexology reports on the introduction of a new state aid scheme “aimed to support investments for promoting energy production from less exploited renewable resources, namely biomass, biogas, geothermal energy.”
Government Decision no. 216/2017 has been set up until 2020 and provides a budget of around EUR 100 million, mostly financed through a European fund for regional development with the rest of 15% coming from the government of Romania.
The scope of the new support scheme aims at expanding investments into renewable energy development in Romania beyond solar and wind power, which have seen most of the development in recent years under a green certificate support scheme.
With the scheme it is hoped that about 40 beneficiaries could develop an additional 60 MW of installed capacity of production of electricity and thermal energy from biomass, biogas and geothermal energy.
The funding under the scheme will be provided in the form of non-refundable funds granted to beneficiaries covering eligible expenses. The decision so far does not list or detail such criteria, but provides for a condition that “that these expenses be generated by investments in development and/or refurbishment of production capacities from renewable resources.”
Funding per project is capped at EUR 15 million and non-refundable costs cannot exceed 45% from the total amount of eligible expenses.
For further details see the article linked below.
Full text of the new government Directive can be found here.