Technical and economic viability of greenfield large scale photovoltaic plants in Romania

Abstract

In 2021 a favorable environment reemerged in Romania for the development of greenfield large scale photovoltaic plants, after all the developments for large scale projects were halted at the end of 2016 when the former subsidy scheme ended. The conclusion of long-term power purchase agreements, a regulatory framework for contracts for difference, grants opportunities, the decreasing cost of technology, rising energy prices and sustainability commitments are all creating a promising context for greenfield development of solar photovoltaics in Romania. This paper covers an existing gap in the scientific literature by assessing technically and economically the viability of large scale photovoltaics in Romania. The paper shows the yield and performance gap between the major regions in Romania and how this gap affects the financial return and the levelized costs of electricity. The assessment shows that using 1-axis tracking is improving the specific yield with 10–13% in comparison with a fixed tilt technology and bifacial modules add an additional 3% to the yield. It was identified that 1-axis tracking improves the captured price in comparison with fixed tilt with up to 4.5 EUR/MWh in the long-term. The same methodology can be applied for updating the assessment when cost or revenue assumptions are changing. The modelling and analysis framework can be used in the technical and economic benchmarking of real projects in Romania and gives a flavor of what can be expected in terms of pricing for long term power purchase agreements, auctions for contracts for difference, but also for the expected returns if the projects remain merchantly exposed.