The internal procedure implementing the ANRE Methodology on allocating grid capacity, issued by Transelectrica (Order No. 53/2024, 30 July 2024), governs annual auctions for allocating grid capacity to connect generation sites ≥ 5 MW (including power increases at existing sites and storage). Below, you can find a summary of how this may impact current and future energy projects.

Key takeaways:

• Eligibility: new and existing generators (≥ 5 MW including power increases), including storage and combined consumption+generation points; rules apply between the TSO/DSOs and users.
• Voltage levels: capacity in the transmission grid (RET) at 220/400 kV and distribution grid (RED) at 110 kV, by network zones (per ANRE Order 137/2021).
• Allocation window: 10 years, starting N+2 (e.g., auctions in 2025 allocate capacity for 2027–2036).

Financials (high-level):

• Bid guarantee: equal to MW requested × 1% × auction starting price.
• Performance/Payment guarantee: 1% of the contract value, to be lodged before signing.
• Payment of awarded capacity: must be made in full within four months; the first instalment of at least 20% is due within 30 days.
• Non-compliance: failure to sign the contract or make payments results in the loss of allocated capacity and the forfeiture of guarantees.

Annual timeline (Year N):

• 15 January (N): TSO publishes available capacity by zone/year (excluding additional reinforcement works).
• 16 January–28/29 February (N): Applications filed (to TSO if >50 MW; to DSO if ≤50 MW).
• 1–10 March (N): DSOs → TSO: forward complete applications.
• 15 March (N): TSO publishes consolidated MW per user/year/zone.
• 16 March – 15 June (N): Global Study update: identifies additional network works, estimated costs, execution duration, auction starting prices.
• By 15 June (N): TSO publishes study results, starting prices and auction schedule.
• 15–28 June (N): Bid guarantees lodged.
• From 1 July (N): Daily auctions on business days, one auction per allocation year, in chronological order.
• Within five business days post-auction: TSO issues allocation contracts for signature.

How awards work — four scenarios:

Scenario A – Demand ≤ available capacity (no reinforcements needed): If total demand is less than or equal to the grid capacity already available, all applicants are accepted automatically. The awarded price is zero, and any unused capacity is carried forward to the next year.

Scenario B – Demand higher than “no-works” capacity but within capacity including reinforcements: When requests exceed existing capacity but can still be covered by the reinforcements planned for that year, an auction is held. However, all applicants are declared winners, and each pays the auction’s starting price—calculated as the cost of reinforcements divided by the capacity made available. Unused capacity is rolled over to the following year, and the starting price for that year is recalculated.

Scenario C – Demand exceeds total capacity (even after reinforcements): If demand is greater than the total capacity available, including reinforcements, a competitive auction is triggered. Bids are ranked in descending order of the offered price (ties broken by time of submission), and capacity is allocated until it is exhausted. The first unsuccessful bidder has two hours to choose whether to secure capacity in the following year at their own bid price, try again in the next year’s auction, or withdraw.

Scenario D – Demand exceeds current capacity, but reinforcements only become available in later years: Where demand cannot be met by existing capacity and reinforcements are scheduled only in future years, the auction takes into account the first year of works completion. The starting price is calculated by dividing the total cost of the works by the cumulative capacity they are expected to unlock. Bidders submit their prices per unit of capacity, and these are then ranked from lowest to highest. Capacity is allocated in order of this ranking until the available cumulative capacity is fully assigned. Bids exceeding the available capacity are unsuccessful. These bidders have the same options as in Scenario C. For subsequent rounds, starting prices are updated based on the remaining capacity and associated costs. 

Action plan for N=2025 auctions:

Check the capacity tender publication released by Transelectrica on 15 January, which includes details on capacity, zones, and delivery years. Prepare and submit a complete application between 16 January and 28 February.

If you have any questions, please contact us for assistance.