03 February 2023
RES deployment LEGAL INSIGHTS
A. the connection Regulation amendments
On 3rd February 2023 the Regulation for the connection of the users to the public interest grid (the “Connection Regulation”)[1] has been amended by means of Order No. 4/2023 amending and supplementing certain orders of the President of the National Energy Regulatory Authority in the field of connection of users to the public electricity grid (“Order No. 4/2023”)[2].
As per the Connection Regulation, in case of a production site with an installed capacity of more than 1MW and for the grid connection of which grid strengthening works are required, the investor has to provide a guarantee in the amount stipulated in the grid connection permit (the “GCP/ATR”), where the amount represents a certain percentage of the connection tariff.
Prior to the amendments of the Connection regulation by means of Order No. 4/2023, the GCP/ATR, which, according to the applicable law, is valid until the issuance of the connection certificate, could have early terminate its validity if, within 3 (three) months as of its issuance date, the investor did not constitute such financial guarantee.
As of 3rd February 2023, the law lays down that the investor shall be required to provide the guarantee mentioned in the GCP/ATR until the execution of the grid connection agreement, which means that the term for providing such has been extended from 3 (three) months) to maximum 12 (twelve) months as of the GCP/ATR date. This amendment is beneficial as it excludes one on the case of cessation of validity of the GCP/ATR (at the present, there remain three other scenarios in which the GCP/ATR ceases its validity before the issuance of the connection certificate).
Mention should be made that new enacted provisions apply to all users who on 3rd February 2023 have submitted connection applications to grid operators (irrespective of the connection stage they are in, until the final energization of the plant).
B. technical norms for co-located & standalone storage
On 20th January 2023, Technical standard on technical requirements for connection to the public electricity networks for electricity storage facilities and notification procedure for the connection of electricity storage facilities, approved by means of Order No. 3/2022 (“Order No. 3/2023”)[3] entered into force.
The Order No. 3/2023 lays down the technical requirements for the connection of electricity storage facilities to public electricity networks, the steps in the notification process for the connection, and the content of the tests for checking the compliance with technical requirements.
The new enacted amendments clarify that Storage Projects are either (i) co-located with either operational or new projects or (ii) standalone. The provisions of the Order No. 3/2023 should be corroborated with the already applicable legislation and provides distinct technical requirements on storage projects of A, B, C and D type.
The enhancement of the regulatory framework for the implementation of storage projects in Romania is beneficial as it is now clear what are the pre-requisites for obtaining the connection certificate thereof.
C. the updated conversion fee
On 19th January 2023 Order of the Minister of Agriculture and Rural Development No 1.343/2018 on the approval of the tariff due for the definitive or temporary removal from agricultural use of land plots located in the extra muros area, as well as for the introduction of agricultural land plots in the intra muros (“Order 1.343/2018”)[4], has been amended by means of Order No. 20/2023 (“Order No. 20/2023”)[5].
As per the new provisions, the conversion fee indexed by the inflation coefficient for the period 2023 (i.e. 13.8%) varies between RON 3.414 (approx. EUR 0.70) per sq. m (for IIIrd grade soil quality) to RON 2.276 (approx. 0.46) per sq. m (for Vth grade soil quality).
Further assistance at:
[1] Published in the Official Gazette, Part I No. 517a of 19 August 2013, as subsequently amended;
[2] Published in the Official Gazette, Part I No. 95 of 3 February 2023.
[3] Published in the Official Gazette, Part I, No 53 of 19 January 2023.
[4] published in the Official Gazette of Romania, Part I, No. 759 of 3 September 2018
[5] published in the Official Gazette, Part I, No. 54 of 19 January 2023.