OFFSHORE WIND ENERGY: ROMANIA SETS THE FIRST THREE AREAS AND THE CONCESSION RULES

More than two years after the adoption of Law No. 121/2024 on offshore wind energy, Romania is taking a new step towards developing the first projects in the Black Sea. The Government has designated three areas available for concession, with a combined estimated capacity of 3.1 GW, and has established the rules governing competitive procedures, concession agreements, financial guarantees, royalties, and works acceptance.

The new framework is regulated under the GD no. 664/2026, GD no. 687/2026 and GD no. 688/2026, published in the Official Gazette late this August. The newly enacted decisions come to supplement the general framework set under the Law no. 121/2024, presented in our previous article, Romania adopts a law for promoting offshore wind energy.

Three areas with a total estimated capacity of 31 GW

The three areas are defined by topographic-geodetic coordinates in the WGS84 reference system and are considered suitable for offshore wind projects with fixed foundations:

The cumulative capacity aligns with Romania's objective to install 3 GW of offshore wind energy by 2035, as set out in Romania's Energy Strategy 2025–2035. 

In delimitating the areas were analyzed average wind speed, water depth, and the levelized cost of energy. Constraints related to navigation, military zones, biodiversity, fishing, underwater heritage, and oil and gas infrastructure were also taken into account.

Some areas overlap with the Istria Midia, Luceafărul, and Neptun XIX 1 petroleum perimeters. Such overlaps do not automatically prevent the development of wind projects. However, they will need to be assessed on a project-by-project basis and may lead to a reduction in the area used, a change in location, an adjustment of the technical configuration, or the adoption of risk mitigation measures.

The concessions will be awarded through competitive procedures The Ministry of Energy will organize the concession procedures and approve the tender documentation for each of them. The announcement must be published at least three months before the deadline for the submission of bids.

The procedure will follow six steps: publication of documentation, requests for clarification, submission of bids, assessment of bids, award of the concession, and contract signing. Specific timeframes will be established separately for each procedure.

Participants will be required to demonstrate that they meet the criteria regarding technical, professional, economic, and financial capacity. They may participate individually, in a partnership, via groupings, or special purpose vehicle (SPV). Participation must also comply with the regulatory framework applicable to the screening of foreign direct investments.

Concession duration and project schedule

The concession agreement may be concluded over a maximum of 30 years, subject to a single extension of up to 10 years. This period includes the exploration, development, construction, and commercial operation of the power plant, as well as the decommissioning of the facilities.

The exploration phase cannot exceed two years but may be extended by a maximum of six months, subject to justification. The contract will establish mandatory milestones and deadlines for completing exploration, obtaining development approval and other permits, making the final investment decision, and commencing construction. Works must begin no later than 12 months after obtaining development approval. If a support scheme applies to the project, the power plant must be commissioned within a maximum of eight years from the signing of the concession agreement. Failure to meet these milestones may result in penalties, the enforcement of guarantees, and, ultimately, termination of the contract.

Financial guarantees for investors

The participation in the procedure and the performance of the contract shall be secured by guarantees in an amount depending on the capacity of the project. The participation bond amounts to EUR 10,000 /MW, and the performance bond amounts to EUR 25,000 /MW.

The later must be provided in the 60 days following the signature of the contract. For a 600 MW project, amounts reach EUR 6 million in participation bond and EUR 15 million in performance bond.

Prior to commercial operation, the concessionaire must also establish a decommissioning bond, fully covering the estimated decommissioning costs. Additionally, the concessionaire must maintain during the whole term of the contract, a guarantee covering 100% of the estimates costs for repairing potential damage caused to the environment.

The amount and the structure of the guarantees may be further adjusted in line with the advancement of the project, depending on the obligations fulfilled and the development stage. The concrete conditions shall be established in the award documentation and in the concession contract.

Royalties and fees

Since starting commercial operations, the concessionaire shall owe the state an annual royalty of 0.75% of the revenues derived from the operation of the power plant and the sale of the electricity produced.

In addition to royalties, the concessionaire shall pay two levies depending on the area used:

• 800 EUR/km²/year during the development stage, for the area where construction works are carried out;
• 1,500 EUR/km²/year during the operational stage, for the area occupied by works and installations, including, where applicable, underwater power cables located outside the concession area.

For multiple-stage projects, the fees and the royalty will be calculated separately for each stage. In the first and last year, the fees will be calculated on a pro-rata basis, reflecting the actual period of application. Unit values will be subject to annual indexation, starting from the second year, based on the Harmonized Index of Consumer Prices (HICP) for the Eurozone published by Eurostat for the preceding year. The amounts are established in euros but payable in RON.

The royalty and fees are classified as tax liabilities and must be declared and paid annually by March 30 of the following year. The financial provisions shall enter into effect 30 days after the publication of Government Decision no. 688/2026, namely on September 30, 2026.

However, Government Decision no. 688/2026 does not establish a support scheme for offshore wind projects. Such a mechanism will require separate approval via a government decision, in compliance with European state aid rules.

Acceptance of the works

The acceptance procedure for offshore installations and onshore works up to the point of connection to the transmission network is regulated under the Government Decision no. 687/2026.

Acceptance may cover the entire project or only a specific section, stage, segment, or category of works.

Partial acceptance is allowed where the relevant portion is clearly delimited and can be safely used or commissioned.

The concessionaire initiates the procedure by submitting a request and the acceptance documentation. If the file is incomplete, the authority must notify the inconsistencies to the applicant within a maximum of 10 working days. In principle, the concessionaire has 20 working days to submit the requested additional information. Once the documentation is confirmed as complete, the authority has a maximum of 20 working days to assess compliance.

Following assessment and inspection, the commission may grant the acceptance without reservations, grant it conditionally, subject to remedial measures, suspend the procedure, or reject the acceptance.

Remedial measures must generally be completed within a maximum of 30 working days. The commission checks whether they were implemented within 10 working days of receipt of the supporting documentation.

This special procedure does not replace the acceptance of onshore works carried out under construction legislation nor does it substitute the procedures for grid connection, energization, authorization, and licensing required to commence electricity generation.

Launching the tenders remains the decisive step

With the adoption of the latest Government Decisions, Romania has defined a key part of the framework required for developing offshore wind projects: available areas, concession rules, financial obligations, and the acceptance procedure.

However, the actual launch of the tenders remains a decision for the Ministry of Energy.

For investors, project assessment will need to include, as early as the bid preparation stage, grid connection costs, financial guarantees, the permitting timeline, environmental obligations, and restrictions arising from existing oil, maritime, and military activities within each area.