March 2025 – On 10 January 2025, Order No. 4/2025 came into force, detailing the procedure for the partial removal of land occupied by permanent grasslands from agricultural use when utilised in a dual system. The use of permanent grasslands in a dual system is of particular interest to investors in the renewable energy sector.
Legislative background
In principle, the possibility of using permanent grasslands in a dual system—both for agricultural production and for generating electricity from renewable sources—was already regulated since 2022. This was introduced by Law 254/2022 as an amendment to Law No. 18/1991 regarding land fund.
However, in practice, numerous difficulties arose regarding the implementation of this provision. The main uncertainties revolved around the method of calculating the built-up area associated with renewable energy projects. For example, questions were raised about whether the land under the ground projection of photovoltaic panels needed to be removed from agricultural use.
Prior to this new order, an indication of how to calculate the areas to be removed from agricultural use for renewable energy projects was only found in regulations concerning vineyards and orchards. However, these regulations could not serve as a basis for documentation related to projects on permanent grasslands.
Key provisions of Order No. 4/2025
Order No. 4/2025 fills this legislative gap concerning the implementation of the dual-use system on permanent grasslands.
According to the new regulations, the area to be removed from agricultural use includes the surfaces occupied by:
- mounting structure poles;
- foundations for wind turbines;
- inverters;
- transformer stations;
- energy storage units;
- independent grounding and lightning protection systems;
- access roads;
- fencing;
- other necessary structures or components for the operation of the energy facility.
By explicitly listing the elements included in the calculation of areas to be removed from agricultural use, some of the previous uncertainties have been clarified. It is now understood that the land under the ground projection of photovoltaic panels does not need to be removed from agricultural use and can continue to be used for agricultural purposes. However, this possibility is subject to certain limitations.
Limitations
Under current Romanian regulations, the placement of renewable energy production facilities on permanent grasslands must meet the following conditions:
Preservation of agricultural use
The project must not affect grass or plant production, the nutritional value of the land, grazing capacity, or other pasture management measures established by pastoral arrangements or grazing regulations.
Ensuring safe animal circulation
The height of renewable energy structures and the spacing between rows must allow for the safe movement, physical safety, and shelter for animals.
Limit on agricultural land conversion
The area partially removed from agricultural use under the dual system must be recorded at the plot and parcel level within each hectare and must not exceed 20% of the total 50 hectares per investment project.
Challenges in documentation and approval
When preparing documentation for the partial removal of permanent grasslands from agricultural use for dual-system utilisation, investors must consider the above-mentioned limitations.
However, the first two limitations are not precisely defined in terms of technical parameters. For example, there is no clear specification regarding the optimal distance between photovoltaic panel rows to ensure safe circulation and shelter for animals. Likewise, there is no detailed explanation of scenarios in which grass production might be considered adversely affected by a proposed project.
In this context, the competent authority responsible for reviewing applications for partial land removal from agricultural use will determine on a case-by-case basis whether these limits have been violated.
Authorities may return documentation that does not meet the requirements or fails to comply with these limits. This lack of clear parameters may create practical difficulties for investors during the approval process. Since the removal of land from agricultural use is a prerequisite for obtaining a construction permit, these difficulties could also impact project timelines.
Recommendations for investors
Investors are advised to consult with the competent authority when preparing documentation for the removal of permanent grasslands from agricultural use. Over time, these parameters may become more clearly defined based on regulatory practice.
Additionally, under the new regulations, investors must enter into contracts with landowners for the dual use of permanent grasslands. These contracts must detail how the land will be used for both activities—grazing and fodder production, as well as renewable energy generation.
For project feasibility, negotiations will focus on key contractual clauses, including:
- the land area allocated for agricultural activities;
- implementation of permanent grassland management measures required by pastoral agreements;
- the area occupied by renewable energy production structures;
- measures to ensure animal welfare conditions.