Eligible technology pathways
The auction covers electrified industrial heat technologies such as heat pumps, electric heating and thermal storage; direct renewable heat from solar thermal or geothermal sources; innovative nuclear heat; and hybrid combinations of these technologies.
For ECONERGY clients, the strongest opportunity lies in integrating industrial heat pumps with photovoltaic generation, electrical and thermal storage, and intelligent energy management.
Temperature and capacity thresholds
The budget is divided into three baskets:
Projects must have at least €2.5 million in capital expenditure and the new capacity must be installed at a single physical site. Multiple units may be pooled at one location, but capacity from separate sites cannot be combined virtually.
Technical source: IF26 Heat Auction Terms and Conditions, version 1.0, 24 September 2026
- €100 million for 80–100°C projects of at least 5 MWth, using heat pumps with COP above 1.5, direct renewable heat or nuclear heat;
- €600 million for 100–400°C projects of at least 3 MWth;
- €300 million for projects above 400°C and at least 3 MWth.
How support is awarded
Applicants will request a fixed premium linked to the volume of heat produced and the direct CO₂ emissions avoided. Bids will be ranked mainly by the requested cost per tonne of CO₂ abated, and support may be paid for up to five years after entry into operation.
A 25% ranking bonus is available for projects that reduce pressure on the power system through qualifying electrical or thermal storage, heat pumps with a COP of at least 1.5, or direct renewable or nuclear heat. This means correct sizing of storage, heat pumps and the operating profile affects both plant performance and bid competitiveness.
What this auction does not cover
The IF26 Heat Auction does not fund ordinary residential or office space heating. R290 heat pumps remain relevant for building electrification and energy savings, but they are not automatically eligible under this industrial auction. Eligibility depends on the presence of an industrial process, the useful heat temperature, and the minimum capacity and investment thresholds.
Preparing a credible project
Potential applicants should begin with a technical and energy assessment covering fuel and electricity consumption, temperature and flow requirements, operating schedules, recoverable waste heat, grid capacity, PV and storage sizing, emissions reduction, and the technical, financial and operational maturity of the project.
Projects invited to grant preparation will need a completion guarantee equal to 6% of the maximum grant. Early preparation, measured data and a coherent engineering concept are therefore essential.
Romania’s Innovation Fund National Contact Point will hold an online information session on 5 October 2026, allowing potential applicants to obtain updated guidance and ask questions to European Commission representatives.
Source: Romanian Ministry of Economy — IF26 information session
ECONERGY can support project preparation through energy audits, thermal and electrical load analysis, waste-heat assessment, heat-pump integration, PV and BESS sizing, technical-financial modelling and coordination with authorised designers and specialists.
The first step is not selecting equipment. It is accurately measuring the process and checking its compatibility with the auction rules.