Please find below the most important provisions of the Offshore Law as promulgated by the President of Romania.
Within 3 months of entry into force, a study will be performed by the Ministry of energy which will establish, among others, 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 natural security restrictions.
The exploitation of offshore wind power will be based on the conclusion of a concession agreement with the Ministry of Energy in accordance with public tender procedures. The concession agreement may be concluded for a period of maximum 30 years with the possibility of prolonging it, only once, for another 10 years. Also, the exploration permit will be issued by the Ministry of Energy after the conclusion of the concession agreement.
The beneficiary of the concession agreement will have to pay, among others, the following:
i) annual royalty for the exploitation of the offshore wind plant;
ii) tax for the concessioned surface and the connection cables surface;
iii) a financial warranty.
The amounts of the above will be established by the 30th of June 2025.
For the construction and the connection of the offshore wind plant, among others, the following permits are required:
i) set up permit from the National Energy Regulatory Authority (ANRE);
ii) development approval from the Petroleum Offshore Authority (ACROPO).
The development approval covers both offshore and onshore works and is issued on the basis of various documents, such as the connection permit issued by Transelectrica (ATR), technical documents, the final exploration report, administrative acts issued by various authorities, various permits and statements. Provisions regarding the procedure of obtaining the development approval will be published by ACROPO by the 31st of December 2024.
Within 12 months from the issuance of the development approval, the beneficiary is obliged to commence the construction works, which will have to be completed in 5 years from the date of commencement.
For the connection of the offshore wind plant, the beneficiary must obtain an 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 which will be included in the electricity transmission grid Development Plan starting with the 1st of January 2025. These studies will affect the terms and conditions of the ATR.
The templates of the ATR, the connection agreement and the connection certificate will be published by ANRE until the 31st of December 2024.
After the completion of the works, the beneficiary must obtain a production license from ANRE in accordance with Energy Law 123/2012.
Also, the Offshore Law established, in the favor of the beneficiary, the possibility of obtaining the easement rights necessary for the construction and exploitation of the offshore wind plant on private property lands owned by natural persons, companies or the State. Compensation established through agreement or through a court decision must be paid to the affected in rem rights owners.
For the public lands necessary for the construction and exploitation of the offshore wind plant, the beneficiary may obtain concession rights.
The beneficiary of the concession agreement may apply for a state aid scheme awarded by the Ministry of Energy if the offshore wind plant will be put into function in maximum 8 years from the conclusion of the concession agreements.
Although the enactment of the law by the Chamber of Deputies is an important step towards establishing the legal regime required for the development of offshore wind plants, it is not yet complete without various norms, methodologies and regulations to be enacted.
Should you have any questions regarding the above, please do not hesitate to contact us.