Romanian government to cut support to power generators using renewable energy resources

By bne IntelliNews August 30, 2013

Romania’s economy ministry has drafted and published online a bill under which it would adjust the support given to power generators that use renewable energy resources in order to avoid their overcompensation.

Specifically, the projects that come online after the bill is endorsed will receive fewer tradable green certificates [TCGs] – that they can sell to power suppliers that have to meet quotas of such certificates. The ministry’s bill clarifies indirectly the situation of ordinance 57/2013 – in the sense that it applies to projects commissioned before the first checks for overcompensation operated currently by market regulator ANRE.  (While the new government bill presents this first check for overcompensation and similar checks will be carried out periodically.)

The correction for the overcompensation is drafted at the recommendation of ANRE*, in line with the law 220/2008 and will impact projects commissioned after the bill is endorsed by the government – namely no later than September 22 [60 days after ANRE’s recommendation]**.

The projects commissioned before that date are under the effect of ordinance 57/2013 – which withholds a certain number of tradable green certificates until after April 2017 or January 2018 depending on the technology.

The reduction in the number of TGCs given per MWh of power delivered is operated as follows:

  1. For small, new hydropower plants – by 0.7TGC
  2. For wind power plans: by 0.5TGCs until 2017 [including] and by 0.25TGCs starting  2018
  3. For photovoltaic plants: by 3TGCs

Following the decision, power producers will receive TGCs per MWh delivered as follows:

  1. New, small hydropower plants: 2.3TGCs
  2. Revamped small hydropower plants: 2TGCs
  3. Wind power plants: 1.5TGCs until 2017 [including] and 0.75TGCs starting 2018
  4. Photovoltaic power plants: 3TGCs.

* under proposal 37604/24.07.2013

** according to an explanatory note also provided by the ministry

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