Support scheme for less exploited energy sources

Updated: 19.01.2019

Author: Cristina Blajin

The state aid scheme has been approved by Government Decision no. 216/2017 in April 2017 to promote energy production from less exploited energy sources, namely biomass, biogas and geothermal energy (art. 8 Government Decision no. 216/2017). The new support scheme is supported by the Ministry of Regional Development and Public Administration (art. 13 Government Decision no. 216/2017), and aims to increase the electricity and thermal energy production from these sources by 60 MW until the end of 2023 (art. 4 par. 2 and art. 11 letter c) Government Decision no. 216/2017).

Eligible technologies

The electricity and thermal energy production from biomass, biogas and geothermal energy. 

Biomass

Eligible.

Geothermal energy

Eligible.

Biogas

Eligible.

Amount

The budget for the subsidy programme is EUR 100,630,533 (art. 13 Government Decision no. 216/2017) from which 85% are ensured from the European fund for regional development and 15% from the state budget. Each project can receive a maximum amount of EUR 15 million of non-refundable costs which can not exceed 45% from the toal amount of eligible expenses (art. 16 par. 1,2 Government Decision no. 216/2017). Small enterprises, including the microenterprises, can benefit from an additional 20 persentage points of non-refundable funding, whereas the medium sized enterprises from an additional 10 persentage points (art. 17 Government Decision no. 216/2017). Additionally, the aid intensity may be increased by 15 percentage points for investments located in assisted areas fulfilling the conditions of Article 107(3)(a) of the Treaty on the Functioning of the European Union. For the same beneficiary and the same eligible costs, the aid received through this support scheme can not be combined with other state aids (art. 17 par. 1 Government Decision no. 216/2017).

Addressees

Large, medium, small and micro enterprises, including newly established ones, or public municipalitites (or their subdivisions or inter-community development associations) that carry out production of electricity and/or thermal energy (art. 8 Government Decision no. 216/2017).

Procedure

Process flow

  • Application: The applicant describes the project and indicates its purpose and its benefits in case of implementation.
  • Verification: The verification process consists of three steps. The first two steps cosist of cheching wether the application fulfils the admissibility (step 1) and eligibility (step 2) criteria. The evaluation system is in form of Yes/No questions, and in order for the application to be further evaluated, all the questions must be answered with “Yes”. The third step consists of technical and finantial evaluation, where the application is assessed for three major criteria: (1) relevance and the project opportunity (max. 30 points), (2) the maturity and quality of the project’s preparation (max. 50 points) and the (3) sustenability of the project (max. 20 points).
  • Selection: The application must accumulate at least 80 points in the third step to be eligible for finantial support. The final projets selection will take into account to total available budget for financing.

Competent authority

Ministry of Regional Development, Public Administration and European Funds

Distribution of costs

State

The new support scheme is supported by the Ministry of Regional Development and Public Administration. Only 15 % of the total budget is ensured from the state budget; the rest 85 % coming from European fund for regional development (art. 13 Government Decision no. 216/2017).

European Union

85% of the total budget is ensured from European fund for regional development (art. 13 Government Decision no. 216/2017).

Romania

Further information

Basic information on legal sources