2 wolf theiss

7/27/2019 2 Wolf Theiss

1/33

RES IN ROMANIA;RENEWABLE ENERGY LAWPROCEDURES & INCENTIVES

Ciprian GlodeanuWolf Theiss

Bucharest, 17 November 2011


2/33

2

TOC

1. Romania RES WIND overview

2. Up and running projects

3. Mandatory quota of RES

4. Support schemes

5. Relevant legislation

6. Promotion System for the Production of RES-Electricity

7. Pricing for the trade of Green Certificates

8. Price of energy

9. Local Permitting

10. Regulatory Framework


3/33

3

ROMNARE

OREW


4/33

4

Romanian Energy System


5/335

ROMANIA RES-WINDPotential for wind in Romania The WIND map of Romania


6/336

ROMANIA TOP 20 WIND PROJECTSNo. Company Capacity (MW) Location County Investment


7/337

UP AND RUNNING PROJECTS FANTANELE AND COGEALAC, CONSTANTA

The largest project in Romania is Czech energy group CEZs wind farms in the villages of Fantanele and Cogealac inConstanta county, with turbines supplied by GE. The 1.1 billion Euro wind energy project, reportedly the largest on-shoreproject in Europe, aims to have a 600 MW total installed power capacity. In Fantanele, CEZ has raised around 120 turbinesand has an installed power of 300 MW. The firm will install around 19 more turbines for a further 47 MW in 2011.

PESTERA AND CERNAVODA, CONSTANTAPortuguese renewable energy company EDP Renovaveis (EDPR) is using 76 Vestas wind generators, each with an installedcapacity of 3.0 MW, for this Dobrogean park. The project in Pestera [90 MW] and 69 MW of the Cernavoda project are nowconnected. The second half of Cernavoda [a further 69 MW] was due to be connected by June 2011. The company also has

613 MW of power at different stages of development. EDPR aims to construct wind farms in Sarichioi (33MW) in Tulcea Countyand Vutcani (24 MW) in Vaslui County.

AGIGHIOL AND SALBATICA, VALEA NUCARILOR, TULCEAItalian energy giant Enels renewable energy company Enel Green Power has opened a 34 MW wind farm in Agighiol and a 30MW farm in Salbatica, using 2 MW Gamesa wind turbines. The company hopes to install a further 40 MW by the end of 2011.Enel in 2009 bought local developer Blue Line, making the first step towards developing wind projects of a total installed powercapacity of 244 MW.

SILISTEA 1, CONSTANTARomanian company Romconstruct Top has developed the wind park Silistea 1, Constanta county using GE turbines. Silistea 1has an installed capacity of 25 MW.


8/33

8

SUPPORT SCHEMES Feed-in tariff

Green Certificate


9/33


10/33

10

Promotion System for the Production ofRES-Electricity

for each 1MWh delivered in the electricity grid (biomass, biogas, gas of waste

fermentation and geothermal energy), the producers of electricity through high

efficiency cogeneration plants will supplementary benefit of one (1) GC

for each 1MWh produced and delivered in the trial period the producers benefit

from one (1) GC, regardless the type of electric plant which produces RES-E

Projects must be completed by December 2016


11/33

11

Pricing for the trade of Green Certificates Trading period increased from 2008 through 2025

Minimum trading value of EUR 27 per CG

Maximum trading value of EUR 55 per CG

Starting with 2011 trading value indexed with Euro zone inflation rate recorded inDecember of the previous year by the National Energy Regulatory Agency

Failure to fulfill the annual quota obligations - an equivalent value of those GCs

which were not purchased at a premium of EUR 110 for each un-purchased

certificate


12/33

12

MANDATORY QUOTA


13/33

13

PRICE OF ENERGY October 2011: an average Peak price of EUR 65.46 / MW

Off peak price of EUR 37.23 / MW


14/33

14

Source: opcom.ro


15/33

15


16/33

16

LOCAL PERMITTING

List of Permits (hand-out)


17/33

17

RGAO

FRMWO


18/33

18

REGULATORY FRAMEWORK Outline of permitting procedures for RES-Electricity generating facilities

Building permit (environmental authorization/approval)

Access to the grid technical permit / Connection Agreement

Setting up authorization (ANRE) Production License (ANRE)

Registration with the Romanian Transmission and System operator

Transelectrica (GCs)


19/33

19

REGULATORY FRAMEWORK

Who issues the building permit?

How long it takes to obtain the building permit?

Which are the required documents?

Are there any tax to be paid for obtaining the building permit?


20/33

20

REGULATORY FRAMEWORK Energy Law (13/2007)

regulatory authority ANRE

Setting up authorisation

Production licence


21/33

21

REGULATORY FRAMEWORK License to generate RES-Electricity - outline

ANRE authorizations for:

construction/refurbishment of electricity and thermal power

co-generation plants construction/refurbishment of electricity lines and transmission stations;

and

construction/refurbishment of electricity lines and supply stations with an

installed power exceeding 110KV


22/33

22

REGULATORY FRAMEWORK License to generate RES-Electricity - outline

Licenses are issued by ANRE to carry out the following:

commercial exploitation of electric and thermal co-generated production

capacity

electricity transmission services electricity system services

electricity distribution systems

act as an electricity market operator; and

electricity supply activity


23/33

23

REGULATORY FRAMEWORK Setting up authorisation procedure:

the applicant files the standard application together with the relevant

documentation

within fifteen (15) days from the submission of documents, ANRE may

require additional information

the drafting of a report by ANRE either granting or rejecting theestablishment authorization and submitting this report to the regulatory

committee of ANRE

the regulatory committee of ANRE decides by a majority vote whether to

grant or reject the establishment authorization; and

communicating the committee's decision to the applicant within five (5)

business days from such decision being issued


24/33

24

REGULATORY FRAMEWORK Additional documents required by ANRE:

the organizational chart of the company

files regarding the employees which evidence their professional skills;

and

organization and functioning regulation

Validity:A maximum of twenty-five (25) years for commercial operation of

electricity generating capacity and electricity distribution activities and

a maximum of ten (10) years for electricity supply activity

Charges on an annual basis:

0.035% of the turnover generated by the owner for the previous year; or a minimum of approximate EUR 265, if the percentage applied to the

turnover is lower than such minimum


25/33

25

REGULATORY FRAMEWORK Access to the electric grid for RES-E producers which benefit from GCs:

Guaranteed access to the electric grid for RES-E producers which

qualify and participate to the GC support scheme

Order no. 42/2011 of ANRE provides the legal framework for the

accreditation procedure

Before entering the GCs market, all participants (i.e. producers of RES-

Electricity and suppliers) must:

register with the GCs market

enter into a so-calledparticipation agreement

with OPCOM; and

register such participation agreement with the GCs Register


26/33

26

REGULATORY FRAMEWORK General trading terms for the Green Certificates:

GCs on two different trading platforms:

on the centralized green certificates market and

on the green certificates bilateral contracts market

regulated and supervised by OPCOM

a GC, during its validity period, can be subject to successive

transactions

GCs value are determined, within the mandatory limits, by market

mechanisms

transfer of GCs from the account of the seller to the buyers account is

performed by OPCOM only after payment confirmation.


27/33

27

REGULATORY FRAMEWORK Monitoring, reporting and enforcement of the Green Certificates system

Order no. 44/2011 of ANRE

monitoring is done by a special department of ANRE on the basis of the

information provided by producers of RES-Electricity, suppliers, OPCOM

and the TSO

GCs may be traded only on the trading platforms


28/33

28

REGULATORY FRAMEWORK General issuing terms for Green Certificates

- transport and system operator Transelectrica is issuing the GCs for the

accredited RES-E producers

- in order to obtain the GCs, the RES-E producers have to register with

Transelectrica

- Transelectrica issues each month, to the accredited RES-E producers,

GCs for the electricity produced out of which it is decreased the energy

used for own technological process

- Transelectrica shall issue the GCs in four (4) days as of the moment all

documentation has been provided by the RES-E producers


29/33

29

AMENDMENTS RECENTLYINTRODUCED Overcompensation 10% over the approved IRR, for each technology*

* the indicators which ANRE is going to supervise in order to assess the possible overcompensation, extend

usually over three (3) years.


30/33

30

AMENDMENTS RECENTLYINTRODUCED Guaranteed access RES-E producers which benefit from GCs after

accreditation in compliance with Order 42/2011 of ANRE

Incompatibility GCs and state aid funds reduction of the GCs number

Decrease the number of GCs from three (3) to two (2) biomass, biogas,

geothermal, biofluids

Additional permits for projects exceeding 125 MW prior to accreditation

request with ANRE, the investor must obtain approval of the GC supportscheme from the European Commission


31/33

31

Answers

Questions


32/33

32

THANK YOU FOR YOUR ATTENTION!

Ciprian Glodeanu

Wolf Theiss si Asociatii SCA

Attorneys-at-Law

Bucharest Corporate Center

58-60 Gheorghe Polizu Street, 13th Floor

Bucharest, Romania

Tel: +40 21 308 81 00

E-mail: [email protected]

www.wolftheiss.com


33/33

33

The contents of this presentation are provided for informational purposes only and

are not intended to serve as legal advice and cannot substitute for legal advice or

guidance in specific cases. Any specific questions that may arise on this topic

should be reviewed with the assistance of legal counsel in order to ensure that any

given concern is properly addressed in accordance with legal requirements.

2011 Wolf Theiss si Asociatii

All Rights Reserved

2 wolf theiss

Documents