Amendments to Romanian legislation that positively impact development of renewable energy projects
Law no. 159/2022 amending Law no. 50/1991 on authorizing construction works entered into force on May 30, 2022. Under the new provisions, building permits may be issued without previously approved land management and urban planning documentation in the case of land plot prospecting and research works – drilling and quarrying – required for carrying out electricity and hydrogen production capacities from renewable sources, as well as other operations.
The Parliament adopted the Draft law amending and supplementing Territorial Fund Law no. 18/1991 and other normative acts. According to the draft, in quality classes III, IV and V agricultural lands for arable use, pasture, vineyards and orchards, as well as those with land improvement works, located outside the incorporated area, undertaken on the basis of a building permit and approval of permanent or temporary exclusion from agricultural use, specific investment facilities for production of electricity from renewable sources may also be established: solar, wind, biomass, bioliquids and biogas energy production installations, electricity storage units, conversion stations or other similar systems which may be located outside the incorporated area agricultural lands, with a maximum surface area not exceeding 50 ha.
As a corollary of the new law, in principle, individuals would no longer have to go through the procedure for approval of Regional Urban Planning for the purpose of incorporating these investment facilities in a built-up area, which would result in a simpler procedure for obtaining the necessary authorization for such projects.
The draft will enter into force after its promulgation and publication in the Official Gazette and will produce legal effects for a limited period, namely until December 31, 2026.
We would also mention that on June 30 2022, Emergency Ordinance no. 104/2022 came into force, amending and supplementing Law no. 17/2014 on certain measures regulating the sale of agricultural land located in the countryside, which mainly clarifies the method of calculation and payment of the 80% tax due on disposal of agricultural land before the expiry of 8 years from purchase.
In the case of sale of agricultural land by means of a sale contract, the 80% tax will be calculated and collected by the notary public prior to authentication of the sale contract. Moreover, the 80% tax is a non-deductible expense when determining the taxable result.
Law no. 159/2022 amending Law no. 50/1991 on the authorization of construction works
Territorial Fund Law no. 18/1991
Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources
Emergency Ordinance no. 104/2022.