Investing in renewable energy?

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A few words about Romanian renewable energy market:

Romania in accordance with European Union laws has committed true the “Energy strategy 2007-2020” to increase the share of renewable  energy in the total energy consumption to 35% in 2015 and  38% in 2020.

In order to achieve this goals Romania adopted the green certificate support scheme presented in Law nr. 220/2008 modified by Law 139/2010 and OUG 88/2011.

According to the laws mentioned above for producer with installed capacity of under 1 MW a feed in tariff for electricity produced from renewable sources will be announced by ANRE.

Private owners with installed capacities of under 50 KW and public authorities can request their utilities provider to receive a compensation for the difference between electricity delivered to the grid and electricity consumed from the grid.

The number of green certificates received by producers who own power plants with an installed capacity larger than 1 MW are:

  • For electricity produced by hydro power plants with an installed capacity of under 10 MW: 3 green certificates for  1 MWh produced and delivered in the system from a new power plant.
  • For electricity produced by wind turbines: 2 green certificate for 1 MWh produced until 2017 and 1 green certificate for 1 MWh produced from 2018.
  • For electricity  produced from biomass: 3 green certificates for 1 MWh produced.
  • For electricity produced by solar power plants: 6 green certificate for 1 MWh produced.

    Additional to the green certificates you can sell the electricity produced and delivered to the grid at the Day Ahead Market price.

The green certificates and the electricity can be sold on the Day Ahead Electricity Market.  The national operator of the electricity market in Romania is OPCOM by government decision  627 of 2000.

In 2010 the electricity market controlled by OPCOM had a significant growth compared with 2009 both in volume (with 37% from 6.346.570 MWh to 8.696.190 MWh) as in transaction value( with 38%  from 232.869.539 Euro to 322.478.397 Euro) .

In 2011 the electricity market recorded  again a growth in volume (with 2% from 8.696.190 MWh to 8.869.600 MWh) and in transaction value (with 43% from 322.478.397 Euro to 461.873.344 Euro).

According to data from OPCOM here are the prices for green certificates and electricity sold on the Day Ahead Market for 2011:

*The average price for one green certificate in 2011 was 55,96 Euro

*The average price for electricity in 2011 was 52,13 Euro/MWh.

* The average price for one green certificate in 2012, from January to September,was 56,29 Euro/MWh.

* The average price for electricity in 2012, from January to September, was 51,74 Euro/MWh.

According to Order nr. 8/2011 from the National Agency for Energy Regulation (ANRE) the price for a green certificate cannot be lower than 27 Euro and cannot be higher than 57 Euro. This values are increased every year with the average inflation rate of the European Union.

The number of green certificates received by the green energy producer is guaranteed for investments finalized until 2016 by Law 220/2008 for a period of 15 years after receiving the producer license.

If the IRR, for renewable energy power plants using the same technology, exceeds with more than 10%  the IRR considered by ANRE for that technology type then ANRE can reduce the number of green certificates for that technology in order to maintain the IRR level as initially considered.

For renewable energy investments in Romania the time to start is NOW.

Your ideas and comments related to this topic are always welcomed.

With best regards,

F.M.B.

reconstructromania@gmail.com

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