CIBR Blog

Romania operates the largest power sector in the SE Europe,and it has joined the Kyoto Protocol.
Most of the RES energy production will be provided by hydro energy.
The current domestic power supply is secured from one third: hydro, nearly one third: coal (mainly lignite), nearly 10% nuclear, and the remainoing from natural gas and heavy fuel. Wind energy plays a minor role with an installed capacity of nearly ten times less than smaller neighboring Bulgaria.

The Romanian energy market is theoretically fully liberalized for corporate and household customers. Actually only half is supplied under free market arrangements.
The Romanian wind energy potential is at more than 20 TWh/yr, but until now not utilized in comparison to its hydro potential.
The Romanian electricity transmission and distribution grid can handle an additional wind power of ca 2,500 MW, For an exceeding capacity it will have to be expanded and modernized.

Tariffs for RES

The Law 220/2008 for Promotion of RES

The modified time periods for the promotion system are
- new installations, all capacities: for 15 years
- used wind turbines, all capacities: for 5 years
- refurbished hydro < 10 MW: for 10 years
- non-refurbished hydro < 10 MW for 3 years

Further incentives are:
- a guaranty of max. 50% (!) of the value of loans for long and medium term.
- the setting up of transport and utilities infrastructure that are necessary for the start up and development of the investment
- tax release and discounts on taxes for reinvested profit for a period of three years from the starting.
- the allocation of subsidies from the state budget for the new created working places

“Green Certificates” (GC) are specific incentives for the green energy.
Each MWh produced in a wind farm will get two green certificates until 2015 (included) and one certificate thereafter. Micro hydro power plants get only ½ certificate while solar power plants (actually still inexistent) will get 3 certificates.
In 2007 a green certificate was traded with ca 43,-€, in 2008 for ca 55 ,-€, while for the period between now and 2013 its value shall be in the 27-55 ,-€ range. Such GC will be issued only within the renewable energy quota approved by law ; additional green energy will no longer enjoy GC type subsidies (therefore putting pressure on late entrants).
A GC not acquired bythe polluter was penalized with 75-82 EUR/certificate in 2007-2008.
Starting 2011 Romania will have also a carbon credits market.

The Environmental Fund Administration within the Ministry of Environment makes available grants of up to 6 M EUR to wind farm projects ; such grants may cover up to 50% of project’s eligible costs (less site land and VAT). In order to efficiently fund larger projects and squeeze as much as possible from such grant scheme , we may design a scheme where multiple SPVs will apply for grants for mini wind-farms of ca 10-12 MW each. Such SPVs shall have different shareholding to qualify for grants.
The Intermediary Organism for Energy within the Ministry of Economy makes available grants of up to 18 M EUR to wind farm projects ; projects shall not excede though 50 M EUR total capex ; such grants may cover between 50-70% of project’s eligible costs (less taxes and VAT ), pending on applicant’s size. Public authorities may get up to 98% grants for their wind farm projects. Both grant schemes described above are funded buy a 50-50% mix of EU and Government funds. Large renewable energy projects over 50 M euro may get EU grants.

Main steps for wind energy projects in Romania

1. Assessment of the wind energy potential (measurements for at least one year and correlation with long term meteorological data)
2. Assessment of the environmental impact (noise, electromagnetic compatibility, birds etc) (Order 863//2002 of the Ministry of Environment)
3. Obtaining the authorizations and approvals needed for the installaion of the generation capacity (Law 50/1991)
4. Obtaining the technical grid connection approval from the electrical grid operator, Transelectrica or the local power distributor (GD 90/2008)
5. Obtaining licenses - electricity and green certificate market (GD 540/2004)
6. Obtaining the qualification certificate for the electricity priority production
7. Registration at the Electricity Market Operator (SC OPCOM SA) – for selling RES generated power on the DAM (Day Ahead Market)
8. Registration at Transmission & System Operator (CN TRANSELECTRICA SA) – for obtaining the GC
9. Registration at the Green Certificates Market Operator (SC OPCOM SA) – for participating on the centralized market of the GC 

   Ayudas y Subvenciones rumania    Creating a Romanian company    Die EU Subventionen in Rumänien fur Unternehmungen   Investissez en Roumanie avec des subvention de la CE    Oprichten roemeense firma_een roemeense vennootschap    Subventiile UE în România si fonduri structurale    Subventii in romania.pdf    Subvenciones de la UE para empresas de la UE en Rumania    Beihilfe und Subventionen in Rumänien    Aids and Subsidies in Romania    EU Subsidies in Romania for EU companies