ROMANIA ADOPTS THE LAW FOR THE PROMOTION OF OFFSHORE WIND ENERGY

Romania took a significant step towards developing electricity production projects from offshore wind resources by adopting Law no. 121 of April 30, 2024, published in the Official Gazette no. 421 of May 8, 2024.

The law, due to enter into effect in 30 days since publicity thereof in the Official Gazette, establishes the general framework for the implementation such projects, names the responsible authorities and lays down the conditions of participation of the acting parties in the operations of exploration, construction and operation of offshore wind power plants.

The offshore wind power plant is defined under the law as an electricity production capacity located in an area of the offshore¹  wind concession perimeter, grouping several wind turbines and their related electrical installations, with the aim of transforming primary wind energy into electricity.

Here follows a summary of the main provisions.

Competent authorities

The Ministry of Energy has extensive responsibilities in the field of offshore wind energy production. These include conducting the necessary studies to identify potential perimeters, organizing procedures for awarding concession contracts, concluding concession contracts, and monitoring their compliance. Also, the Ministry is in charge, among other things, of the management of data and information regarding offshore wind resources and the issuance of the operating permit allowing the concessionaire to exploit the concessioned offshore wind perimeter or to suspend the works authorized under the concession contract.

At the same time, the Competent Authority for the Regulation of Offshore Oil Operations in the Black Sea (ACROPO), subordinate to the Government, has the role of issuing approvals² for the development of offshore wind power plants, monitoring, and controlling the concessionaire's compliance with the rules and instructions in the field. Among other things, this institution issues binding rules and instructions regarding the operational safety of exploitation activities.

ANRE is the competent authority for issuing the establishment permit and the electricity production license.

Concession of offshore wind perimeters

Offshore wind perimeters concession contracts are awarded to Romanian or foreign legal persons, who cumulatively comply with a series of eligibility conditions³, within a competitive award procedure. The concession announcement is published on the website of the Ministry of Energy, at least 3 months before the submission deadline.

Concession contract: is concluded between the Ministry of Energy and the selected economic operator for a maximum period of 30 years, with the possibility of a single extension period of a maximum of 10 years.

Performance bond: shall be issued by the holder of the concession contract to secure compliant performance of the contract, including for decommissioning projects, as well as the reparation of damages caused to the environment. The amount of the performance bond will be set by Government Decision, until June 30, 2025.

Insurance obligation: The holder of the concession contract has the obligation to get insurance coverage for the constructions built in the offshore wind perimeter.

Concession right: The concessionaire has the right to fully or partially concession the rights and obligations acquired under the concession contract, with the prior approval of the grantor, to another legal entity that meets the eligibility conditions. In this case, the concession owner and the grantor are jointly and severally liable for the obligations due prior to the conclusion of the concession.

Exploration: During the concession term, concession owners have the right to explore the offshore wind perimeter for maximum 2 years since signature of the concession contract. The exploration term can be extended for maximum 6 months, for serious grounds and with the agreement of the grantor.

The concessionaires who perform exploration works submit quarterly reports to the Ministry of Energy, as well as a final report on the works performed, the investigation methods used, and the outcomes. The exploration of the offshore wind perimeter and the exploitation of this perimeter via construction and operation of the offshore wind power plant can be made based on the concession contract concluded with the Ministry of Energy for each offshore wind perimeter, the development approval issued by ACROPO, the establishment permit, and the production license issued by ANRE⁴.

Construction of the offshore wind power plant

The permit to establish the energy plant is issued by ANRE and is valid maximum of 5 years from the date of commencement of the works. After the issuance of the establishment permit, the works are carried out based on the development approval issued by ACROPO within 60 days from the date of submission of the full documentation by the concessionaire.

The development approval can be issued for the works entirely or with regard to sections, stages, parts, sectors, depending on the request of the concessionaire.

The concessionaire has the obligation to start the construction works within maximum 12 months from the issuance of the development approval. The registration of the building works carried out on land in the integrated cadastre and land register system can be made, upon request, based on an attestation certificate, confirming that the constructions are compliant with the building permit and the cadastral documentation and that there is an acceptance protocol.

Connection to the electricity transmission grid

The energy transmission and system operator approves the connection of the offshore wind farm to the transmission grid. The developer is in charge with the development, at his own expense, of the plant's internal network, including the necessary stations and cables up to the point of connection to the electricity transmission grid. The developer is responsible for the operation of the facilities up to the point of connection.

Decommissioning ot the power plant

The developer of the offshore wind power plant must restore the concessioned perimeter to its previous state, including to rehabilitate and clean the respective area according to the conditions established by the environmental authority. The approval for the decommissioning works of the offshore wind power plant is granted by ACROPO, based on the technical project for decommissioning, and the monitoring of the decommissioning activities is carried out by ACROPO, according to its own regulations.

Limitations on property rights

The restrictions apply to private land and property, provided that operations are carried out for the exploitation of wind energy or the construction of the plant. These limits include the right of access and use of the lands necessary for specific operations, the right of underground or overhead passage for electric facilities, as well as the right of access to the lands necessary for the operation of the power plant. They are exercised for the entire duration of the respective activity or temporarily, in case of interventions or repairs. Such limitations do not apply to buildings owned by defense, public order, and national security institutions or those intended for state border security.

Fees and royalties

Starting with the commissioning of the offshore wind farm, the holder of the concession contract pays an annual royalty for the concessioned offshore wind perimeter. For the perimeters located outside the internal maritime waters and the territorial sea, the concessionaire pays, starting with the date of the development approval, a fee for the concession area of the constructed offshore wind farm and for the area lodging underwater electric cables connecting to the connection points outside the perimeter of the concession.

Key deadlines for enforcement of the legal provisions

• Until December 31, 2024, at the latest, ANRE has the obligation to issue the regulations regarding the granting of permits for the establishment of offshore wind power plants, including the templates for technical approvals for connection and contracts for connection to the network.
• Until December 31, 2024, at the latest, ACROPO shall issue, by order of the head of the authority, enforcement rules regarding the procedure for obtaining the development approval.
• Until March 31, 2025, is expected the approval by Government Decision of the list of offshore wind perimeters that can be concessioned, defined by topographical coordinates.
• Until March 30, 2025, ACROPO, by order of the president, shall issue regulations regarding exploration activities, as well as construction/decommissioning and operation of offshore wind power plants.
• By June 30, 2025, is expected the publication of the Specific Norms regarding the procedures for the concession of offshore wind farms, the amount of annual royalties and fees, as well as the support scheme, as the case may be.
• Until June 30, 2025, ANRE has the obligation to issue regulations regarding the granting of the electricity production license, considering the characteristics of offshore wind power plants and the monitoring of their operation, according to the license.

Notes 

1. An offshore wind perimeter is a surface of the public domain, delimited by reference to the maritime space development plan, purpose of the concession for exploration, construction and operation of offshore wind powerplants and evacuation of the electricity produced.
2. The approval for the development of the offshore wind power plant is an act assimilated, from the point of view of legal effects, to the construction permit, representing the construction/decommissioning permit for the works carried out in a determined offshore perimeter, as well as for those carried out on land, until at the point of connection with the electricity transmission network.
3. Applicants wishing to participate in the competitive concession award procedure must cumulatively meet the following eligibility conditions: a) have legal personality and are legally established in accordance with the relevant legislation of the member state of their nationality; legal entities of another nationality have the obligation to have established, at the date of submission of the offer, a subsidiary on the territory of Romania that shall hold of the rights and obligations arising from the concession contract; b) are not unable to pay or in a state of insolvency; c) are not in liquidation, subject to judicial administration, to preventive arrangement, ad hoc mandate or other agreement with creditors and their activity is not suspended; d) all due taxes, fees and social security contributions to the budgets composing the consolidated budget are paid in Romania or in the country where their professional headquarters are registered; e) the applicant or the legal representative has not been convicted of a crime of corruption, service, forgery or against national security, perpetrated intentionally, in the event that such conviction have not become spent; f) are not subject to a state aid/de minimis recovery decision issued by the European Commission, the Competition Council or another state aid provider or, if they were, such decision has already been executed and the debt was fully recovered, in the case of applicants who also apply for a support scheme; g) is not an enterprise in distress h) the applicant or legal representative is not subject to international sanctions Non-EU economic operators have the obligation to go through the authorization and examination procedures specific to foreign direct investments, before participating in the procedures organized by the competent authority to obtain the concession, the permits, the licenses in order to explore, build and operate the offshore wind power plant.
4. Until December 31, 2024, at the latest, ANRE shall issue the regulations for granting the permits for establishment of offshore wind power plants.