EXCLUSIVE Huge interest in installing photovoltaic panels through the NRRP: 98% of projects are in this area, while only 1-2% are on wind energy

Component 6 of the NRRP, managed by the Ministry of Energy, which facilitates investments in the development of „green” solutions, has quickly entered the sights of Romanian companies in the energy industry. Thus, there is a huge interest in the installation of photovoltaic panels, with 98% of projects in this direction and only 1-2% for wind energy. Roxana Mircea presented exclusively for Economedia which companies are interested in applying for support through the NRPP.

REI Finance Advisors’ consultants say that at the level of the 9 regional offices in the country they are in advanced discussions with about 300 companies that want to install photovoltaic panels, with a minimum power of 0.2 MW, to increase energy efficiency in production or storage processes. Company representatives expect to exceed at least 100-150 projects by the May 31 application deadline.

„On wind energy, we have 2-3 requests at the country level, but the process of preparing the feasibility study is much more time-consuming than in the case of projects for the installation of photovoltaic panels, so there is a possibility that the SF may not be obtained in time to submit the project by 31 May. According to our information, the Ministry is considering extending the session, due to the huge interest from potential clients, after extending the submission deadline once again, which was announced in the original guidelines for one month (31 March – 30 April 2022). The current submission session is currently from 31.03-31.05. We are waiting for the official communication of this information and to clarify a few other issues related to the guide, in particular the eligibility of companies that are renting the future investment space, whether the land on which the investment will take place is mortgaged or what is the situation of those who are re-servicing”, said Roxana Mircea (photo), managing partner REI Finance Advisors.

Among the industries that have shown the greatest interest in investing in renewable energy through support from the Ministry of Energy’s PNRR budget are PVC joinery production, automotive, food industry – meat processing, sausages, juices or shipyard services, hotels.

Representatives of the consultancy firm say that agricultural activities, such as livestock farming, will be eligible under a scheme to be run through the Ministry of Agriculture that will allow panels to be installed on or near farm roofs.

What is the average capacity that companies are applying to install through photovoltaic panels or wind farms?

Roxana Mircea: About 70% of the applications are from plants that are mainly targeting less than 1 MW and target a grant of about 60% of the investment, out of the standard cost of 750,000 euro (which includes a maximum of 20% storage costs, in batteries).

About 30% of the applications go above 1 MW, where we estimate that the percentage of grant funding will be around 20-30% of a cost standard of maximum 425.000 euro, which includes storage costs.

How difficult is it to develop such a project and what are the specifics?

We have complex documentation to prepare in a very short time. Applicants have to prepare geo, topographical studies if installing on the ground or technical expertise if installing on the roof, or a feasibility study with a company specialized in photovoltaic/wind.

Applicants for PNRR funding wishing to install photovoltaic panels or wind power plants must apply for an Urban Planning Certificate and start obtaining the Environmental Notice. If the company is a start-up, it also needs a letter of comfort, and if it has a credit rating of over 7.5.

In parallel, the company is working with us to prepare the funding application, CVs with the implementation team, statements, institutional analysis, advertising plan, etc.

The renewable energy grants are part of Component 6 of the NREP, managed by the Ministry of Energy, and are targeted at SMEs, large companies, and start-ups. They facilitate investments in the development of „green” solutions for companies operating in Romania, for projects where each beneficiary can access up to €15 million of non-reimbursable funds.

According to the specific Guide, published on 30 March 2022, companies can apply for non-reimbursable financing for investment in renewable energy through photovoltaic panels of at least 0.2 MW, whereas investments of up to 1 MW can benefit from non-reimbursable financing of up to €750,000/MW, and those exceeding 1MW – up to €425,000/MW.

In the case of investments in wind power plants, the grant amounts to €1.3 million for projects between 0.2 and 1 MW, while projects above 1MW benefit from a cost standard of €650,000/MW. The investments will be completed, i.e. installed and connected to the NES (National Energy System), including commissioning, by the end of the second quarter of 2024 at the latest.

Translated from Romanian by Ovidiu H.