The Solar Power Plant Investment Process in Romania

1. Company Formation and Land Acquisition

To make an investment in Romania, first of all a company is established, this is carried out by our partner in Romania on behalf of the investor. 14 ATRs that have completed these stages ATRs are about to be issued for the ready projects are available.

For example: On behalf of the company, approximately 10 acres (approximately 10,000 m²) of land is being purchased for a 1 MW solar power plant and a 4 MW battery energy storage system (BES).

2. Zoning and Solar Power Plant Permit

A zoning plan (Plan Urbanistic Zonal – PUZ) specific to the solar power plant is being prepared and approved for the purchased land. The Plan Urbanistic Zonal (PUZ) is a detailed zoning plan in Romania regarding urban planning and land use, and it is a mandatory step for implementing a specific project (such as a solar power plant) in a particular area.

What is included in the PUZ Plan?

  • The land’s boundaries and size
  • The property’s current zoning status
  • The nature of the project to be undertaken (e.g., “photovoltaic park”)
  • Electrical infrastructure connections
  • Environmental impact analysis
  • Access roads, fire lanes, infrastructure planning
  • The local community’s right to object and municipal approval processes

Preparation of the PUZ and submission to the municipality: 1–3 months
Public information and approval process: 1 month
Municipal approval: The entire process may take 3–6 months

Without PUZ approval:

  • ● ATR (network connection permission) cannot be obtained.
  • ● Building permit (autorisation de construire) will not be issued.
  • ● The project cannot legally proceed to the installation phase.

Depolamalı sistem seçildiyse, GES imar süreci tamamlandığında, ATR (Aviz Tehnic de Racordare) belgesi alınması da kolaylaşıyor.

What is an ATR (Technical Connection Notice)?

The ATR certificate can be considered the equivalent of a letter of invitation in Turkey. It is a mandatory technical compliance certificate that must be obtained from the grid operator before any generation facility (such as a solar power plant) can be connected to the electricity grid in Romania.

What is the purpose of an ATR certificate?

  • This demonstrates that it is technically feasible to connect to the power grid at the project site.
  • It specifies the technical conditions under which your power generation facility can be connected to the grid.
  • It includes details such as the power transmission line connection point, power level, voltage level, transformer requirements, etc.
  • This document is issued by the grid operator (typically Transelectrica in Romania or the local DSO).

Why is the ATR Certificate Critical?

  • SPP zoning (PUZ) is obtained after completion.
  • Without ATR:
    • Unable to connect to the network.
    • Government incentives are not available.
    • The process of obtaining a license cannot be initiated.
  • In addition, if you wish to transfer or sell a project to an investor, the ATR certificate is typically one of the required documents.

ATR Certificate Purchase Period

● Once an ATR application has been submitted, it is typically processed within 1–2 months.

ATR Required Documents for the Application

  • PUZ (Urban Zoning Plan) approval
  • Land title deed and technical drawings
  • Company information
  • Technical details of the solar power plant (number of panels, inverter capacity, etc.)
  • Application for connection to the grid

3. Before Purchasing the Project – Due Diligence (Preliminary Review)

Before taking on the project, the investor must conduct a detailed (due diligence) process must be conducted. For this purpose an internationally recognized a16> Due Diligence firms one of is engaged.

A) Technical Review

  • The accuracy of the claims regarding the annual energy production of the solar power plant is verified (for example: Is the statement “1 MW → 1,400,000 kWh/year” correct?)
  • Is the distance from the power transmission line (grid) really appropriate?
  • Have the interconnection agreements actually been signed?

B) Legal Review

  • The validity of documents such as land titles, ownership status, zoning permits, and licenses is verified.
  • It is determined whether there are any legal obstacles or risks associated with the company or project.

C) Financial Review

  • If information such as investment costs, revenue projections, and payback period is provided by the project owner, it is analyzed by an independent firm.

Due Diligence Period: Approximately 15 days
Cost: Approximately 12,000 euros

4. FTA Review – Romanian Government Approval

Before the investor purchases the project and before doing so, a financial security check similar to MASAK is conducted in Romania. This FTA (Financial Transaction Analysis) process, confirms that the investor has not generated dirty money.

This process takes approximately 1 month.

5. Project Procurement and Contracts

  • Once the due diligence process is complete and FTA approval has been obtained, the pre-drafted sales agreement takes effect, and representatives travel to Romania to proceed to the signing stage of the agreement
  • If no obstacles arise during the project, the investor will proceed with the official purchase.

6. Setup and Coordination Process

Once the project has been transferred to the investor, the setup and operational processes are initiated in accordance with the following steps:

A. Technical and Operational Process

  1. Choosing an EPC (Engineering, Procurement, Construction) Firm
    • Selection of an appropriate engineering and installation company for the project
    • Site layout, construction planning, and technical implementation
  2. Equipment Procurement and Logistics Planning
    • Supply of equipment such as solar panels, inverters, wiring, and transformers
    • Delivery and installation plans creation
  3. Network Connection Process
    • Connection to the power transmission line in accordance with the ATR certificate
    • Completion of the necessary and approval procedures
  4. Legal and Licensing Processes
    • Building permit (Autorisation de construire)
    • Applications for business permits and licenses
    • Notifications and approvals to be obtained from local authorities

B. Partnership and Process Management Support (Optional)

If the investor requests that the project, the project mutually agreed-upon proportion of a partnership model and/ or process support consulting framework jointly progress option is offered:

  1. Partnership Option
    • You can partner with an investor on a project for a specific period and at a specific rate.
    • This model is chosen to share the risk and provide more active support throughout the process.
  2. Coordination and Monitoring Support
    • Technical, legal, and administrative support is provided throughout the entire setup process.
    • In the event of any issues, investors are not left to fend for themselves; the necessary resolution mechanisms are swiftly put into place.
  3. Process Transparency and Reporting
    • Regular progress reports are provided to the investor.
    • Updates, official correspondence
Solar Power Plants (SPP)

Opportunities and Benefits of Solar Power Plant Investments in Romania

The European Union’s Solar Energy Capacity and Targets

  • Current Status: As of the end of 2024, the European Union (EU) has increased its solar energy capacity to 338 GW. (Reuters)
  • Goals: The EU aims to reach 600 GW of solar energy capacity by 2030. These goals have been set as part of the EU’s “REPowerEU” plan. (Çevko)

Compared to other European countries, Romania offers Turkish companies significant advantages in various aspects when it comes to energy investment. In particular, due to the decline in marginal agricultural land in major European countries (Germany, France, Italy, Austria, and Spain), new investments are primarily taking the form of the Carport model*.

What is a Carport Model?

*This model consists of solar panels installed on open parking lots using a steel structure. This method is more efficient in terms of land use, and the solar panels both generate energy and provide shelter for vehicles.

1. Why Romania?

Land Requirements: In secondary European countries such as Romania, Bulgaria, and Hungary, there are extensive areas of marginal agricultural land compared to other European countries, offering more cost-effective options for the installation of solar power plants with storage.

  • ► Approximately 13 acres of marginal agricultural land is required for the installation of a 1 MW solar power plant.
  • ► Approximately 60 acres of land is required for the installation of a 5 MW solar power plant.

There are currently two nuclear reactors in Romania, and the first unit is scheduled to undergo a comprehensive refurbishment between 2026 and 2028. This makes the need for alternative energy sources even more critical. (World Nuclear)

Romania’s Solar Energy Capacity and Targets

  • Current Solar Energy Capacity: As of 2024, Romania has approximately 1.4 GW of installed solar energy capacity.
  • Total Renewable Energy Target: According to official sources, Romania aims to add a total of approximately 6.9 GW (6,900 MW) of renewable energy capacity by 2030. This target includes solar energy as well as wind and other renewable energy sources.
  • It aims to increase the share of renewable energy in total energy consumption to 38.3% by 2030. (EnergyWorld)
  • There are opportunities for arbitrage in energy storage systems in Romania, and the electricity market has been liberalized, with various markets (day-ahead, intraday, etc.) operated by OPCOM. (Clean Energy)

Cost and Return Comparison of Solar Power Plants in Romania and Turkey:

Turkey (2024 Averages)

  • Cost: The turnkey installation of a 1 MW solar power plant (including land) costs approximately $750,000 per MW.
  • Profit (5.1H): approximately 3.3 TL per 1 kWh.

Romania (2024 Averages)

  • Cost: The investment cost for a 1 MW solar power plant with 4 MW of storage (including all permits) is 1,300,000 euros.
  • Annual Return: Approximately 420,000 euros.
  • Revenue (1 MW solar power plant + 4 MW storage): 17.5 TL per 1 kWh.
  • Depreciation Period: Approximately 4 years.

Romania Electricity Prices: As of June 2024, In Romania, the electricity price per kWh for households is 0.176 USD, while for businesses it is 0.230 USD. It is anticipated that this price will increase by 2025. (Global Oil Price)

2. Why is it advantageous for an investor from Turkey?

  • Obtaining a residence permit in Romania by establishing a company or making an investment, European market offers a strategic advantage for organizations that a17> advantage for. This process enables you to both expand your business operations and alsothe opportunity to obtain legal residence rights in Romania.
  • For the solar power plant installation in Europe on average amounting to 55,000 USD worth of steel is used. However;
  • Steel Supply and Processing: Steel imported from China can be processed under an In-Plant Processing Permit, with its HS code changed, and then exported duty-free to Romania by road under the European Coal and Steel Community Free Trade Agreement.
    In terms of steel usage, this process yields a cost advantage of approximately $17,500 per MW.
    Note: The average cost of transporting steel by truck from Turkey to Romania is 160 euros per ton.
  • There are no panel manufacturers in Romania. Since Turkey possesses a strong infrastructure for panel production, Romania market offers significant opportunities for panel exports.
  • Loan Opportunities: European financial institutions offer loans of up to 10 million euros for renewable energy projects at an interest rate of LIBOR + 2.5%. This is equivalent to an interest rate of approximately 5%.
  • Up to 10,000,000 euros from a bank can be obtained with a letter of credit a 1:1 loan can be obtained.
  • This allows investors to begin their investment by securing a 1:1 loan—using virtually no equity—simply by providing a letter of credit. Once construction is complete, the bank returns the letter of credit and transfers the mortgage to the solar power plant; once the plant begins generating profits, the bank starts collecting the remaining payments from those proceeds.

3. The Importance of Moving Forward with the Right Partner

  • Strong Local Partner: Our Turkish partner in Romania, has been based in Bucharest for 34 years, and maintains strong and cooperative relationships with Romanian municipalities and government agencies. a14> municipalities and maintains strong and effective relationships. The acquisition of the land required for investment, permits issuance, official and bureaucratic processes coordination of these matters has considerable experience.
  • Projects with All Permits Secured and Ready for Development: Our partner’s portfolio includes small, medium, and large-scale plots of land where all necessary permits have been obtained, letters of invitation have been issued, and the sites are ready for development. Upon request, we also offer the opportunity to develop new projects from the ground up for investors.

    Note: Prices for ready-made projects vary depending on the project’s size, the location of the land, and the fee for obtaining an ATR (grid connection permit).

  • The Importance of References: The company has already initiated energy project development processes for major industrial, construction, and energy firms that have been brought in from Turkey and have reached agreements, and it possesses connections strong enough to provide solid references in this regard.

Thanks to our strong local partner, solar power plant investments in Romania offer Turkish investors a highly attractive and profitable opportunity, leveraging government and municipal connections, a strategic location for panel production and steel supply, financial incentives, high electricity prices, and favorable financing options.