NZIA implementing regulation on renewable energy auctions adopted

The NZIA inter alia requires Member States to apply certain non-price criteria to at least 30% of the volume auctioned per year per Member State (or 6 GW per Member State) for the deployment of energy from renewable sources from 30 December 2025 onwards. When designing auctions for the deployment of energy from renewable sources, Member States shall include:

1. pre-qualification criteria related to: responsible business conduct, cyber security and data security, and ability to deliver the project fully and on time, and
2. pre-qualification criteria or award criteria to assess the auction’s sustainability and resilience contribution.

This article summarises the main features of the implementing regulation specifying the pre-qualification and award criteria for auctions for the deployment of energy from renewable sources.

What do I need to know?

The implementing regulation specifies the pre-qualification and award criteria from the NZIA to facilitate their uniform application across the EU, while at the same time aiming to leave flexibility to the Member States to adapt them to their respective auction systems.

The mandatory pre-qualification criteria are specified as follows:

• Responsible business conduct: companies (except for SMEs and energy communities) shall be required to comply with reporting standards under the Corporate Sustainability Reporting Directive and to publicly communicate on their responsible business conduct.
• Cybersecurity and data security: bidders shall be required to take appropriate and proportionate technical, operational and organisational measures to ensure the security of the renewable energy installation’s network and information systems. In addition, bidders from certain third countries shall present cybersecurity plans outlining how system security is guaranteed and relevant data kept within the EEA.
• Ability to deliver the project fully and on time: bidders shall be required to provide, among others, documentation on their financial and economic situation proving their financial capability to complete the project, and a timetable for the construction and operation of the project, including the dates of all relevant intermediate steps leading to project completion.

The mandatory pre-qualification criteria and award criteria to assess the auction’s sustainability and resilience contribution are specified as follows:

• Resilience contribution: auction rules shall in particular result in a resilience contribution where more than 50% of the technology supply originates from a single third country. Member States shall allow participation in the auction or award points only to bids where the final product and, depending on the relevant renewable energy technology, certain main specific components used do not originate from the relevant third country.
• Sustainability contribution: auction schemes shall foster sustainability contribution via the following:
• Environmental sustainability: Member States shall implement auction criteria that refer to the carbon footprint of renewable energy technologies, circularity (e.g. recyclability, ease of repair and maintenance), biodiversity impact, energy efficiency, and contribution to efficient water use and solutions avoiding (water) pollution.
• Innovation: auction criteria shall introduce a requirement for all projects to meet a minimum level of improvement in key performance indicators (KPIs) that goes beyond the state of the art of technologies and solutions that are already available on the market. KPIs may include, for example, the use of technology to promote energy system integration or technology longevity.
• Energy system integration: auction rules shall take into account contribution to system needs resulting from their operation, based on temporal flexibility, locational impact and connections across energy carriers. The application of such criteria could streamline investments in battery energy storage systems (BESS), hybrid renewable energy installations, or green hydrogen production.

What should I do next?

Member States will perform the first auctions under the NZIA in 2026. Project developers should become familiar with the respective pre-qualification and auction criteria and consider them for their supply chains. Bidders should be prepared to present together with their bid a cybersecurity plan of the bidding project and update it on a regular basis during the implementation of the project. To verify compliance with criteria related to responsible business conduct, independent third-party statements will have to be acquired.