Plans for delayed disbursement of support to green energy producers in Romania remain in limbo

By bne IntelliNews February 28, 2014

The Romanian government's emergency ordinance* that postpones the support [green certificates] given to renewable electricity generators for projects already completed remains in limbo after President Traian Basescu challenged it to the constitutional court and the government claims that the objections raised by Basescu are superficial and irrelevant.

As a result of the ordinance not being enforced as a law, the uncertain legal framework stays put since the ordinance should have created effects on projects completed by the end of 2013 [and not later]. It not being converted to a law, however, results in principle in effects on projects completed after January 2014 that overlap with the effects of other legislation [overcompensation mechanism].

President Basescu claims that the government has not notified the European Commission on the adjustments to the renewable energy support law [law 220/2008] generated by the ordinance. As a law with effects on the state aid policy, the amendments to it should have been notified to and endorsed by the Commission, the president claims.

In its turn, the government claims that it pursued the simplified notification procedure under the Regulation 794/2004 art.4.

Romania’s parliament endorsed in December the emergency ordinance 57/2013 that amends the renewable energy law 220/2008. This means investors in existing renewable energy production capacities will have part of their tradable green certificates withheld until March/December 2017 (depending on the technology used).

* OUG 57/2013

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