The outlook for the dual use of permanent pasture lands

Meanwhile, renewable energy projects on agricultural lands, such as arable or permanent pasture, have sharply increased in recent years due to dedicated policies and measures aimed at reducing pollution. However, this could impact the goals set under the EU's Common Agricultural Policy for 2023-2027.

Agricultural land use and climate neutrality are critical components of the European Green Deal. It is essential to strike a balance between the need to develop renewable energy projects and the protection of agricultural land.

Advancing dual-use land legislation for renewable energy and agriculture in Romania

Against this backdrop, Romanian legislation allows for the dual use of land for both animal grazing and fodder production, as well as for production of electricity from renewable sources. This concept was first introduced by Law No. 254/2022, which amended and completed the Land Fund Law No. 18/1991.  

Specifically regarding permanent pastures, in 2024, the Ministry of Agriculture and Rural Development (MADR) published a Draft Decision to amend and complete the Methodological Norms for applying the provisions of Government Emergency Ordinance No. 34/2013 regarding the organisation, administration and exploitation of permanent pastures and to amend and complete the Land Fund Law No. 18/1991 (the "Project"). The Project aims to clarify the dual-use system for permanent pastures, initially regulated by Law No. 254/2022.

Defining the parameters   

First, the Project defines the concepts of "use of permanent pasture in a dual system", "good management of pasture in case of dual use" and "total area of permanent pasture used under dual system". The latter comprises (a) the area used for agricultural activities, and (b) the area occupied by the entire renewable project to be developed.

Based on the above definition, the Project specifies that the area occupied by the renewable project and its associated equipment must not exceed 20% of the total area of 50 hectares per investment target used in the dual system. For instance, if an area of 50 hectares is used in the dual system, the area that may be allocated to a renewable project is 10 hectares. 

Furthermore, the recovery of non-productive land is permitted not only for land within the same locality where the project is to be developed but also for land within other localities within the same county if no non-productive land is available in the original locality.

Establishing criteria and standards

Finally, the Project regulates the type of clauses to be included in dual-use agreements and the investors' obligations. For example, this ensures that the area remaining in the agricultural circuit will be used for agricultural activities. Thus, photovoltaic (PV) plants that qualify as agrivoltaics – namely, solar plants that meet specific criteria (such as the elevation from ground level, wide spacing between rows of panels and the tilt of the panels) – would, in principle, qualify for dual use of permanent pastures as stipulated by the Project.

In this context, the Project stipulates certain general requirements that PV plants must meet to qualify for the dual-use regime. Notably, the elevation of the PV panels and the spacing between rows must facilitate animal circulation, safety and shelter. Unfortunately, due to the absence of detailed parameters and technical design requirements that PV plants must observe to qualify as agrivoltaics, there is a risk that the MADR and/or other authorities in the permitting process may deny agrivoltaics qualification, resulting in the refusal to approve partial redesignation of the affected lands.

This notwithstanding, the Project may undergo further amendments, including the enactment of dedicated norms regulating the relevant technical parameters. Its final form will be crucial for investors and for the future of renewable energy in Romania.

authors: Mădălina Mitan, Florina Chirilă, Vlad Cordea