News October 13th, 2011

Eng. Paul Keisch Page 1

Government Ordinance to state aid

for renewable energy was approved.

The electricity will be expensive

The Government approved on Wednesday the order under which aid

will be provided by green certificates for renewable energy

production, after industry associations have complained several

times the delayed adoption of this legislation, ANRE management

estimating that this scheme will generate an increase in electricity

tariff for households of 2.5% next year.

"Ordinance amends and supplements Law 220/2008 for promoting stability of RES production

system.

Legislation supports renewable energy projects through the green certificates

system, which allows investors to recover investments. Green certificates are

awarded for electricity produced from renewable sources and supplied to

consumers.

Thus, an investor makes money from the sale of both energy and the green certificates traded on

that market, because electricity suppliers are obliged to buy the annual quota. This support scheme

has been approved by the European Commission.

News October 13th, 2011

Eng. Paul Keisch Page 2

Support through green certificates scheme will be implemented by 2021. The biggest impact will be

felt in 2016-2017, when consumers could end up paying for energy up to 30% more.

Asked by journalists how much electricity will be expensive for domestic

consumers due to this scheme, the president of the National Energy Regulation

(ANRE), Dan Julius Plavetti, submitted a tariff increase of 2.5% next year.

"The calculations performed by us on a screenplay about the capabilities that will be put into

operation in 2012, including supported renewable energy production, shows an impact of up to

2.5% next year, probably applied from January 1st. Basically, now, average bill a consumer

appliances is around 50 lei, increasing by 2.5% so that means green certificates scheme is 1.25 lei in

charge of consumer appliances.

He said that ANRE analyzed several scenarios on energy price rises and that the

percentage of 2.5% was most likely, but that depends on the "how wind next

year".

"It may beat well or less well", said the head of ANRE.

He argued that the investment potential in this area amounts to over €5 billion.

Representatives of the Romanian Association for Wind Energy (RWEA) said in early October, the

Government has not yet approved granting state aid law by renewable energy green certificates,

because they fear much impact on electricity bills.

"This law will be discussed in the ruling coalition; there is concern at the political level that the

impact of the price will be 8%. RWEA estimated that the impact will be only 4.76%. We sent these

calculations to both the Prime Minister and Minister of Economy", said Ionel David, public affairs

consultant of the Romanian Wind Energy Association (RWEA).

According to calculations by the National Authority for Energy Regulation (ANRE), Romania's

electricity consumers will pay €10 billion in addition to bills by 2020 to support investment in

renewable energies.

ANRE estimates in August, after an opinion from the EC was accepted, the law would be applicable

in September, which however did not happen. Also, ANRE appreciates that electricity prices paid by

consumers would increase by 10% next year due to law enforcement.