Newsletter

On 1st of February 2024, ANRE published the Draft Order regarding the approval of the Methodology for capacity allocation of production capacities.

The Draft Order is currently under public consultation for the next 30 days.

The amendments represent a total market transformation as it is envisaged to allow capacity allocation for production capacities based on public tenders, as opposed to the current first came first served rule.

As highlights, (i) the process should start as of 1 January 2025, (ii) is applicable only for production capacities adove 1MW, with or without storage capacities, (iii) is not applicable for standalone storage capacities and (iv) the tender awarding criteria will be the highest offered price.

It remains to be seen what will happen to standalone storage capacities and, even more important, what will happen with the ATR requests submitted before 1 January 2025.

Please see below more information:

     Tender Methodology

(i) Public tenders will be conducted annually for medium and high voltage projects;

(ii) TSO will develop a platform on which the tenders will be made publicly available;

(iii) TSO will also conduct a global solution study which will include various enforcement works such as: a) the available capacity of the grid with and without enforcement works, b) total capacity requested by the users, c) total value of the enforcement works for every year of a so called 10 years allocation period and d) the starting price of the tender;

(iv) Grid users will have the opportunity to participate in tenders by submitting a request for capacity allocations in the 16 January – 28/29 February timeframe;

(v) For capacities of 50 MW or bigger, the requests will be submitted to the TSO, while for capacities of up to 50 MW the requests will be submitted to the DSO;

(vi) The winners of the public tender will conclude agreements with the TSO/DSO;

(vii) The production capacity has to be finalised and put into function in the year the grid capacity become available;

(viii) The are no transitory provisions regarding ATRs for which requests have been submitted on the basis of previous legislation.

     Other Important Amendments – appicable for all ongoing and future projects

(i) The financial warranty required for the connection of production capacities to the grid will be necessary even when reinforcement works don’t need to be performed and will have a fixed percentage of 5% of the value of the connection tariff;

(ii) The financial warranty will have to be provided before the issuance of the ATR and will be released upon the putting into function of the production capacity;

(iii) The cases in which the warranty terminates or is executed have been amended.

Should you have any more 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

Newsletter

On 1st of February 2024, ANRE published the Draft Order regarding the approval of the Methodology for capacity allocation of production capacities.

The Draft Order is currently under public consultation for the next 30 days.

The amendments represent a total market transformation as it is envisaged to allow capacity allocation for production capacities based on public tenders, as opposed to the current first came first served rule.

As highlights, (i) the process should start as of 1 January 2025, (ii) is applicable only for production capacities adove 1MW, with or without storage capacities, (iii) is not applicable for standalone storage capacities and (iv) the tender awarding criteria will be the highest offered price.

It remains to be seen what will happen to standalone storage capacities and, even more important, what will happen with the ATR requests submitted before 1 January 2025.

Please see below more information:

     Tender Methodology

(i) Public tenders will be conducted annually for medium and high voltage projects;

(ii) TSO will develop a platform on which the tenders will be made publicly available;

(iii) TSO will also conduct a global solution study which will include various enforcement works such as: a) the available capacity of the grid with and without enforcement works, b) total capacity requested by the users, c) total value of the enforcement works for every year of a so called 10 years allocation period and d) the starting price of the tender;

(iv) Grid users will have the opportunity to participate in tenders by submitting a request for capacity allocations in the 16 January - 28/29 February timeframe;

(v) For capacities of 50 MW or bigger, the requests will be submitted to the TSO, while for capacities of up to 50 MW the requests will be submitted to the DSO;

(vi) The winners of the public tender will conclude agreements with the TSO/DSO;

(vii) The production capacity has to be finalised and put into function in the year the grid capacity become available;

(viii) The are no transitory provisions regarding ATRs for which requests have been submitted on the basis of previous legislation.

     Other Important Amendments - appicable for all ongoing and future projects

(i) The financial warranty required for the connection of production capacities to the grid will be necessary even when reinforcement works don’t need to be performed and will have a fixed percentage of 5% of the value of the connection tariff;

(ii) The financial warranty will have to be provided before the issuance of the ATR and will be released upon the putting into function of the production capacity;

(iii) The cases in which the warranty terminates or is executed have been amended.

Should you have any more 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

Newsletter

On 1st of February 2024, ANRE published the Draft Order regarding the approval of the Methodology for capacity allocation of production capacities.

The Draft Order is currently under public consultation for the next 30 days.

The amendments represent a total market transformation as it is envisaged to allow capacity allocation for production capacities based on public tenders, as opposed to the current first came first served rule.

As highlights, (i) the process should start as of 1 January 2025, (ii) is applicable only for production capacities adove 1MW, with or without storage capacities, (iii) is not applicable for standalone storage capacities and (iv) the tender awarding criteria will be the highest offered price.

It remains to be seen what will happen to standalone storage capacities and, even more important, what will happen with the ATR requests submitted before 1 January 2025.

Please see below more information:

     Tender Methodology

(i) Public tenders will be conducted annually for medium and high voltage projects;

(ii) TSO will develop a platform on which the tenders will be made publicly available;

(iii) TSO will also conduct a global solution study which will include various enforcement works such as: a) the available capacity of the grid with and without enforcement works, b) total capacity requested by the users, c) total value of the enforcement works for every year of a so called 10 years allocation period and d) the starting price of the tender;

(iv) Grid users will have the opportunity to participate in tenders by submitting a request for capacity allocations in the 16 January – 28/29 February timeframe;

(v) For capacities of 50 MW or bigger, the requests will be submitted to the TSO, while for capacities of up to 50 MW the requests will be submitted to the DSO;

(vi) The winners of the public tender will conclude agreements with the TSO/DSO;

(vii) The production capacity has to be finalised and put into function in the year the grid capacity become available;

(viii) The are no transitory provisions regarding ATRs for which requests have been submitted on the basis of previous legislation.

     Other Important Amendments – appicable for all ongoing and future projects

(i) The financial warranty required for the connection of production capacities to the grid will be necessary even when reinforcement works don’t need to be performed and will have a fixed percentage of 5% of the value of the connection tariff;

(ii) The financial warranty will have to be provided before the issuance of the ATR and will be released upon the putting into function of the production capacity;

(iii) The cases in which the warranty terminates or is executed have been amended.

Should you have any more 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