The Ministry of Energy organized public consultations yesterday on the proposed amendments to the regulation governing auctions for large renewable energy capacities, with the participation of interested companies and associations from the sector.
The changes will reflect the new provisions of the Law on the Promotion of Renewable Energy, approved last year, and will improve the regulatory framework for the construction of large-scale photovoltaic and wind parks within the “fixed tariff” mechanism. For this mechanism, 165 MW is allocated, of which 105 MW for wind technology and 60 MW for photovoltaics. The inaugural launch of auctions for fixed-price plants will enable the construction of large wind and photovoltaic parks, reduce dependence on energy imports, decarbonize the economy, and create new jobs.
The construction of these parks will contribute to achieving Moldova’s commitment to reach a 27% share of renewable energy in final energy consumption by 2030.
Energy Minister Victor Parlicov emphasized that the discussed amendments aim to simplify auction procedures and reduce the risks of future renewable energy development projects. According to him, the auctions are expected to be launched in the beginning of the second quarter of this year.
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Thus, the new regulation will provide additional auction stages, stronger prequalification checks, an increase in participation and performance guarantees, the government’s right to apply “statistical transfers” of renewable energy with other EU member states, and effective competition. Additionally, the auction is expected to achieve lower fixed prices that are mutually beneficial for both winning producers and end consumers.
Eligible producers will have the right to both fixed-price contracts and “difference contracts” until the establishment of the Day-Ahead Market (DAM) and Intraday Market (IDM) on the OPCOM platform. The different contract allows better integration into the market for eligible producers. In the case of a two-way difference contract, producers will receive payment in the event of low market prices but will have to return any surplus above the exercise price in the event of high electricity prices.
The state has three support mechanisms for green energy producers, guaranteeing the purchase of surplus energy delivered to the grid and helping them recover their investments:
- net billing, introduced from January 1, 2024, valid for small producers with installations for self-consumption;
- fixed tariff for 15 years – for parks and plants up to 1 MW photovoltaic or 4 MW wind;
- fixed price, also valid for 15 years, for larger parks and plants over 1 MW photovoltaic or 4 MW wind, capacities allocated through auctions.