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

Romania, August 20, 2010

The new Law 220 for the promotion of renewable energy provides 2 GC’s for every MW Wind Power sold to the distributors until 2018, given that the commissioning of project started before 2017. After 2018 the incentive for Wind Energy will be 1 GC per MW.

At this moment there are not enough GC’s available for the DSO’s in order to meet the mandatory quota. The Green Certificates are therefore sold at its high price of 55 EURO per GC.

Figure 1 GC Market in RON

Source: OPCOM

The prices shown above are the prices for which the GC’s were traded on the Centralized market for Green Certificates. The table below shows the exchanges rates per months of the RON.

Figure 2 Overview RON-EURO-USD Exchange Rates 2009-2010

Source: BNR

Figure 3: Prices Green Certificates in RON

Of all the certificates issued in 2010 until August 18th, 170263 GC’s are sold and 52748 still need to be bought by DSO’s  in order to fulfil the obligation to purchase green certificates for up to 8,3% of the total electricity consumption. It is clear that for the next few years there will remain a shortage on the market for Green Certificates.

For the period 2008-2014 the value of the Green Certificates was established between 27 and 55 EURO per certificate. The penalty for a DSO that does not buy the mandatory quota if available is €110 (was €80) for each certificate not bought.

Number of Green Certificates issued for the fulfilment of the 2010 quota, until 18 august 2010. 223.011
Number of Green Certificates traded on the Centralized Green Certificates Market for the fulfilment of the 2010 quota, until 18 august 2010. 134.027
Number of Green Certificates traded on the Bilateral Contracts Green Certificates Market and submitted to S.C. “Opcom” S.A. until 18 august 2010. 36.236
Number of Green Certificates available for the fulfilment of the 2010 quota, until 18 august 2010. 52.748

Table 1 Overview Situation Green Certificates 2010

Renewable energy sources eligible to participate in the system of promotion by means of Green Certificates trading:

  • Hydro energy used in power plants with installed capacity until 10 MW
  • Wind
  • Solar (Photovoltaic)
  • Geothermal energy and gases associated
  • Biomass
  • Biogas
  • Gas from the landfill waste fermentation
  • Gas from the fermentation of the sediment from the sewage treatment of used waters

A full overview how the electricity market works, what risks there are and what barriers there are for developing a Wind Farm in Romania is available in the report “Perspectives of Investing in Wind Energy in Romania” of LAMAR Company


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

  1. Renewed pressure on the dollar, after the recovery of the last hours dictated by the market saw some adjustments in anticipation of today’s employment data from the U.S. and the weekend meetings of the IMF

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