Romania’s second contracts-for-difference (CfD) auction has awarded 1,488 MW across 26 photovoltaic projects. The results reinforce solar power’s role as the main source of new renewable capacity additions in Southeast Europe. The auction is also described as supporting a shift from fragmented merchant development toward large-scale projects with more predictable long-term revenues.
Dama Solar among largest projects backed by CfD support
The largest project highlighted in the auction results is Dama Solar, planned for development by Rezolv Energy in western Romania. The project has approximately 1.04 GW of planned capacity. Auction outcomes show that 211 MW secured CfD support at a strike price of €65.17/MWh.
Romania’s CfD design provides protection during periods when wholesale electricity prices are low. It also requires projects to return excess revenues when market prices rise above the contracted level. The second auction set a ceiling of €73/MWh for solar projects, which the results indicate helped shape bidding and competition among developers.
Auction volumes and contrasting solar versus wind deployment
The auction results show that more than 2.75 GW of combined renewable capacity was awarded across technologies. However, the available wind quota was not fully utilised. The different deployment patterns are linked to solar projects’ generally shorter construction periods, established supply chains, and fewer siting constraints.
This technology mix is occurring alongside Romania’s broader electricity-market exposure to growing photovoltaic output. As solar generation increases, daytime prices across Southeast Europe have been reported to move toward very low levels. After sunset, prices can rise sharply when solar output disappears.
Day-ahead price swings tied to midday PV output
On 19 July 2026, Romanian day-ahead prices reportedly fell to €0.02/MWh during the solar generation period before increasing to €154.13/MWh later in the day. Similar price movements were reported in Bulgaria and Greece. The pattern reflects a disconnect between midday supply from photovoltaics and evening demand.
For generators, this can affect the capture price, defined as the average market value received during operating hours. While CfDs can provide revenue protection for supported projects, merchant plants and projects whose contracts eventually expire remain exposed to price cannibalisation. Curtailment risks could also increase if transmission capacity, flexible demand, and storage do not expand at a similar pace.
Grid integration needs for Romania’s next stage of solar growth
The next phase of Romania’s solar expansion is expected to depend less on installed megawatts and more on system integration. Batteries are cited as a way to shift excess solar production into evening hours. Industrial consumers are also referenced as being able to adjust demand toward periods with lower electricity prices.
Stronger interconnections are described as enabling exports of surplus generation, while hybrid solar-wind configurations are referenced as providing a more balanced production profile. Projects such as Dama Solar, with approximately 1.04 GW planned capacity, are also expected to add pressure on transmission networks and affect price formation across markets from Hungary and Bulgaria to Serbia and Moldova.
{{EXTLINK_0}}
{{EXTLINK_0}} Romania’s second CfD auction has shown that solar projects can be procured at scale and at competitive prices. As auction rounds approach the 1.5 GW scale, requirements for storage, flexible demand, stronger grids, and greater cross-border trading capacity are highlighted in relation to rapidly growing midday photovoltaic output.
{{EXTLINK_1}}
{{EXTLINK_1}} The same market dynamics are linked to concerns about preventing midday-driven volatility from becoming a source of instability rather than an asset for power-system development.
