News about Romanian Green Certificates

Bucharest, June 6th 2010

Barriers to wind development in Romania:

During the special meeting organized by the EWEA and attended by members of the EWEA members and of the Romanian Association of Wind Energy Producers, more information about the new version of LAW 220 and the Green Certificates for RES (Renewable Energy Sources) in Romanian was given.

Until 2018 Wind Energy Suppliers will receive 2 green certificates for each MW generated and delivered to the OPCOM. One of the criteria is though that the project is operation before 2016. All projects after this date will not benefit from the extra GC.

Moreover LAW 220 will contain the guidelines how the energy will be sold on de market. At this moment Romania has no proper market system in place that can handle the specific nature of a market where both energy from fossil sources and Renewable Sources are traded.

The OPCOM currently experiments with a model for the Intraday market, meaning that energy producers will announce every 6 hours how much energy they will/can deliver in the next day. Transelectrica will then take that data for the balancing that takes place every hour. The idea is that energy producers put a quantity of energy on the market at a certain price. The TSO (Transport System Operator) then starts taking from the list from the cheapest to the more expensive. But producers also can announce at what price they offer to limit production. Also from these offers they create a list. With these two list they hope to balance the market. Not clear was the position of the Wind Energy producer as the initial proposal favored Wind Energy (and RES in general) above fossil fuels. With the latest model it looks like that the price will be the factor that determines if a supplier will deliver or not.

Moreover there is a penalty. This penalty will be applied when the producer does not deliver while he promised to deliver and also when he promised to reduce and he does not he will be penalized

This systems looks to be very complicated and contains too many variables. If all parameters are variable, how will you determine a balance? But thee is more: Is there uberhaupt a business case at this moment in Romania when it comes to Wind Energy? That might be the key question.

The LAW 220 that all are waiting for still will take another 3 months. After that the ANRE will have to implement the law and that will take another couple of months as we can assume.

In the mean time  investors are not sure if they will have a profit if any with this system in place. Despite the wind potential of 14.000 MW Romania still has a long way to go in order to become a major player on the market. The first thing will be to put a system in place that provides investors with a reliable plan for the next 20 years. Only then Romania can benefit from the billions of EURO’s of investments that the Wind Energy Industry can bring, not to mention the labor it will create.

See also on Carbon Credit Romania:

Green Certificates sold in Romania at the maximum price of 55 EURO, but there is a risk…

New version LAW 220, the Romanian law on renewables, published, 13th August 2010

Want to know all about the barriers when developing a Wind Farm in Romania?

Report “Perspectives of investing in in Wind Energy in Romania

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