4 march 2024

Newsletter

On the 4tht of March 2024, the Offshore Wind Energy draft law (“Draft Offshore Law”) was approved by the Romanian Senate and will be sent to the Chamberof Deputies for approval.

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 process, the Draft Offshore Law underwent someamendments in comparison with the previous version.

Please see below what persisted, what is new or amended and what was excluded.

Persistent Provisions

     A study will be performed by the Ministry of Energy which will establish, among other, the offshore blocks, the potential route/s for the injection of the produced electricity into the grid and provisions regarding a state aid scheme to be further structured and implemented. The offshore blocks will be established by considering their wind energy potential, the future maritime activities to be performed as well as national security restrictions.

     The exploitation of offshore wind energy will be based on the conclusion of a concession agreement with the Ministry of Energy according to public tender procedures. 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 is 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 Offshore Law establishes, in the favour of the Beneficiary, the possibility to obtain, for the construction and exploitation of the wind plant, the necessary easements rights on private property lands owned by natural persons, companies or the State. A compensation established through an agreement or a court decision must be paid for these rights.

Amended or New Provisions

     The beneficiary of the concession agreement may apply for a state aid scheme awarded by the Ministry of Energy if the offshore production capacity will be put into function in maximum 8 years from the conclusion of the concession agreement, formerly the capacity had to be of at least 3 GW.

     Until the 31st of December 2024, ANRE will issue ATR templates for offshore wind capacities.

     The annual royalty will only have to be paid for the exploitation period of the concession agreement, formerly the exploration had to also be paid.

     The definitions of the offshore block and of prohibited areas were amended.

     A new tax for the blocks located on the area managed by the National Romanian Waters Administration will have to be paid annually by the beneficiary of the concession agreement.

     A new permit will have to be obtained from the Ministry of Defense for the works that require the help of divers.

Excluded Provisions

     The Draft Offshore Law does not mention anymore the establishment of a security commission for the safe exploitation of offshore wind.

     Various details regarding the envisaged state aid scheme were removed from the Draft Offshore Law, currently existing only the general idea that a state aid scheme will be further developed.

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
4 march 2024

Newsletter

On the 4tht of March 2024, the Offshore Wind Energy draft law (“Draft Offshore Law”) was approved by the Romanian Senate and will be sent to the Chamberof Deputies for approval.

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 process, the Draft Offshore Law underwent someamendments in comparison with the previous version.

Please see below what persisted, what is new or amended and what was excluded.

Persistent Provisions

     A study will be performed by the Ministry of Energy which will establish, among other, the offshore blocks, the potential route/s for the injection of the produced electricity into the grid and provisions regarding a state aid scheme to be further structured and implemented. The offshore blocks will be established by considering their wind energy potential, the future maritime activities to be performed as well as national security restrictions.

     The exploitation of offshore wind energy will be based on the conclusion of a concession agreement with the Ministry of Energy according to public tender procedures. 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 is 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 Offshore Law establishes, in the favour of the Beneficiary, the possibility to obtain, for the construction and exploitation of the wind plant, the necessary easements rights on private property lands owned by natural persons, companies or the State. A compensation established through an agreement or a court decision must be paid for these rights.

Amended or New Provisions

     The beneficiary of the concession agreement may apply for a state aid scheme awarded by the Ministry of Energy if the offshore production capacity will be put into function in maximum 8 years from the conclusion of the concession agreement, formerly the capacity had to be of at least 3 GW.

     Until the 31st of December 2024, ANRE will issue ATR templates for offshore wind capacities.

     The annual royalty will only have to be paid for the exploitation period of the concession agreement, formerly the exploration had to also be paid.

     The definitions of the offshore block and of prohibited areas were amended.

     A new tax for the blocks located on the area managed by the National Romanian Waters Administration will have to be paid annually by the beneficiary of the concession agreement.

     A new permit will have to be obtained from the Ministry of Defense for the works that require the help of divers.

Excluded Provisions

     The Draft Offshore Law does not mention anymore the establishment of a security commission for the safe exploitation of offshore wind.

     Various details regarding the envisaged state aid scheme were removed from the Draft Offshore Law, currently existing only the general idea that a state aid scheme will be further developed.

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
4 march 2024

Newsletter

On the 4tht of March 2024, the Offshore Wind Energy draft law (“Draft Offshore Law”) was approved by the Romanian Senate and will be sent to the Chamberof Deputies for approval.

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 process, the Draft Offshore Law underwent someamendments in comparison with the previous version.

Please see below what persisted, what is new or amended and what was excluded.

Persistent Provisions

     A study will be performed by the Ministry of Energy which will establish, among other, the offshore blocks, the potential route/s for the injection of the produced electricity into the grid and provisions regarding a state aid scheme to be further structured and implemented. The offshore blocks will be established by considering their wind energy potential, the future maritime activities to be performed as well as national security restrictions.

     The exploitation of offshore wind energy will be based on the conclusion of a concession agreement with the Ministry of Energy according to public tender procedures. 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 is 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 Offshore Law establishes, in the favour of the Beneficiary, the possibility to obtain, for the construction and exploitation of the wind plant, the necessary easements rights on private property lands owned by natural persons, companies or the State. A compensation established through an agreement or a court decision must be paid for these rights.

Amended or New Provisions

     The beneficiary of the concession agreement may apply for a state aid scheme awarded by the Ministry of Energy if the offshore production capacity will be put into function in maximum 8 years from the conclusion of the concession agreement, formerly the capacity had to be of at least 3 GW.

     Until the 31st of December 2024, ANRE will issue ATR templates for offshore wind capacities.

     The annual royalty will only have to be paid for the exploitation period of the concession agreement, formerly the exploration had to also be paid.

     The definitions of the offshore block and of prohibited areas were amended.

     A new tax for the blocks located on the area managed by the National Romanian Waters Administration will have to be paid annually by the beneficiary of the concession agreement.

     A new permit will have to be obtained from the Ministry of Defense for the works that require the help of divers.

Excluded Provisions

     The Draft Offshore Law does not mention anymore the establishment of a security commission for the safe exploitation of offshore wind.

     Various details regarding the envisaged state aid scheme were removed from the Draft Offshore Law, currently existing only the general idea that a state aid scheme will be further developed.

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