Draft Offshore Wind Law - Mihailescu Legal

21 december 2023

On the 21st of December 2023 a draft law on measures necessary for the exploitation of offshore wind energy (“Draft Law”) was approved by the Romanian Government and sent for approval by the Parliament.

The Draft Law establishes the general provisions for the exploitation of offshore wind energy, especially the competent authorities in this field, the necessary permits and endorsements, the lease of offshore blocks and the methods for determining the leasable blocks.

During the approval period, the Draft Law will certainly undergo amendments, however, please see below the mainmatters to be taken into consideration:

A study will be performed by the Ministry of Energy which will establish the offshore blocks which can be exploited for energy production and the potential route/s for the injection of the produced electricity into the grid. The findings of the study will be published through a ministerial order, which will also contain an offshore wind plan, technical information, the prohibited areas of the sea and environmental information. Moreover, a list of the blocks will be published until 30 June 2025.

The exploitation of offshore wind energy will be based on the conclusion of a concession agreement with the Ministry of Energy according to the procedure for public tenders. The concession agreement may be concluded for a maximum of 30 years with the possibility of prolonging it, only once, for another 10 years.

The fees of the concession agreement that will be paid by the beneficiary are as follows:

(i) annual royalty;
(ii) tax for the concessioned surface and the connection cable surface;
(iii) a financial guarantee;

The amounts of the above fees will be established by 30 June 2025.
For the constuction of the offshore wind plant, the following permits are necessary:
(i) Set Up Permit from the national energy regulatory authority (ANRE);
(ii) Development approval from the of petroleum offshore authority (ACROPO);

The development approval is issued on the basis of various documents, such as technical documents, administrative acts of various authorities, permits and statements.
In 12 months from the issuance of the development approval, the Beneficiary in obliged to start the construction works, which have to be finished in 5 years from the issuance date.

For the construction works to be performed on land (for example, connection works), a building permit will have to be obtained from ACROPO.

For the connection of the offshore wind plant, the Beneficiary must obtain a technical connection approval (ATR) from Transelectrica. In this respect, Transelectrica will perform studies to assess the potential impact of large amounts of offshore wind energy on the national energy grid starting with the 1st of January 2025, the results of which will impact the terms and conditions of the ATR.

After the completion of the works, the Beneficiary must obtain a production license from ANRE according to Energy Law 123/2012.

Also, the Draft Law establishes, in the favour of the Beneficiary, the possibility to obtain, for the construction and exploitation of the wind plant, the necessary assements rights on private property lands owned by natural persons, companies or the State. A compensation established through and agreement or a court decision must be paid for these rights.

In addition to the Draft Law, various norms, methodologies and regulations should be enacted detailing the steps set out in the Draft Law.

Should you have any questions regarding the above, please do not hesitate to contact us.

Anca Mihăilescu
Managing Partner
Mobile: +40 791 454 988
E-mail: anca.mihailescu@mihailesculegal.ro

Uricariu Mihail
Associate
Mobile: +40 732 141 830
E-mail: mihai.uricariu@mihailesculegal.ro

21 december 2023

During the approval period, the Draft Law will certainly undergo amendments, however, please see below the mainmatters to be taken into consideration:

The fees of the concession agreement that will be paid by the beneficiary are as follows:

(i) annual royalty;
(ii) tax for the concessioned surface and the connection cable surface;
(iii) a financial guarantee;

The amounts of the above fees will be established by 30 June 2025.

For the constuction of the offshore wind plant, the following permits are necessary:

(i) Set Up Permit from the national energy regulatory authority (ANRE);
(ii) Development approval from the of petroleum offshore authority (ACROPO);

The development approval is issued on the basis of various documents, such as technical documents, administrative acts of various authorities, permits and statements.

In 12 months from the issuance of the development approval, the Beneficiary in obliged to start the construction works, which have to be finished in 5 years from the issuance date.