REI analysis: Over €5 billion in grants for green energy, agriculture, and other sectors

At least eight funding programmes are already open or in the process of being launched by the authorities this year, with a total allocation of around €5 billion according to a REI analysis, one of the largest consultancy firms specialising in attracting grant funding for both private companies and public authorities.

The grant support, available in the form of both state aid and European funds, is aimedat investments in green energy production and increasing energy efficiency for companies, in the production of construction materials, in the food sector or in the reindustrialisation of certain key regions of the country, by increasing the number of employees and stimulating investment in development.

“It is one of the largest and most important allocations of non-reimbursable funds for companies in Romania since joining the EU in 2007, and the funding programmes support investments in key sectors that can develop the economy and attract significant local investors. We are working and talking to many companies preparing important local investments and most of them are considering non-refundable support from the government, both in the form of state aid and access to European funds. We see progress even at the level of ministries, which have hired specialised staff, which have announced the digitalisation of certain key processes, so we are optimistic and expect 2024 to be a much better than 2023,” says Roxana Mircea, managing partner at REI Grup stated.

Among the major funding programmes in the first half of this year REI Grup can mention:

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The Modernisation Fund programme started in November last year with the session dedicated to the agricultural sector, where farmers were able to access €150 million of the more than €500 million made available by the MADR. Towards the end of the year, the session dedicated to public authorities was also launched, with a competitive procedure based on the “first come, first served” principle.

More than 700 municipalities and local councils submitted projects on the first day of the session, where the REI team managed to secure a significant share of the projects, representing over 20% of the total.

“For the next round of photovoltaic or battery storage projects under the Modernisation Fund programme, which will be launched in the coming period, we recommend that the feasibility study and urban planning certificate are prepared when the project is submitted, and that the technical approval for connection (ATR) is requested at the time of contracting. This is one of the most eagerly awaited funding programmes this year and the interest is very high,” adds Roxana Mircea.

The first session of the INVESTALIM programme initially took place from 27 October to 27 November, and due to the high level of interest, MADR extended the session for a further 30 days. A total of 49 projects were submitted for this first call, with a total investment value, including co-financing, of over €1 billion and a total state aid requested of over €300 million, more than double the amount allocated for the session.  

“There are discussions within the Ministry to increase the allocation for Session 2 this year to over €450 million, but this detail is currently under consideration. Interest remains very high and we are in talks on a daily basis with major agri-food clients for important production projects. Approximately 20% of the projects submitted in the first session of INVESTALIM were intermediated by REI and the investments concerned meat processing, bakery or oil production/refining and amounted to approximately €220 million,” Roxana Mircea added.

Postponed and delayed for about 2 years, Waste Management is one of the most eagerly awaited funding schemes for companies wishing to invest in recycling plants. The original budget announced by MMAP was over €280 million, but the current allocation has dropped to around €220 million.  

Announced last year, CONSTRUCTPLUS is the most anticipated funding programme for companies active in the production of construction materials. With a consolidated Guide already released to the market, entered in the Government meeting on Thursday – 11th of January, the call is expected to open on February 15 and will be active for one month.

“We have dozens of discussions and projects in the pipeline on this funding scheme, so much awaited by manufacturers of building materials, one of the most important investment sectors in the country. Although the allocation is relatively small compared to the existing demand in the market, we would like the Ministry to consider increasing the allocation for future sessions, similar to what is being negotiated for INVESTALIM,” Roxana Mircea stated.

In addition to the eight major funding programmes announced for this year, other schemes are being prepared by the ministries, including a new version of the scheme regulated by GD 807/2014, which in recent years has been the most important support solution for companies specialising in manufacturing, a new session of the scheme regulated by GD 959/2022, dedicated to the manufacturing industry, RePowerEU, a major funding programme dedicated to increasing energy efficiency and independence from fossil fuels, as well as other programmes in the NRRP, which represent another 40 billion euros of investment and development funds for both the public and private sectors.