renewable energy in romania

7/31/2019 Renewable energy in Romania

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Renewable energy sources in

Romania

Green certificate system in Romania


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Contents

1. Background information for Romania

2. The Romanian Energy Potential and Targets

Solar energy

Solar irradiation

3. Romanian energy market: risks and opportunities

4. Green certificates system

Legal framework

Actors

5. Conclusion


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Background information

Romania is situated in the south-east of Central Europe. It is member of theEuropean Union since 2. The country covers 238,391 square kilometers and is

the continents 13th largest country in area.

The major features of relief units are:

31% mountains,

36% Sub-Carpathians, hills and plateau

33% plains, meadows and Danube Delta.

The climate is intermediate between temperate and continental types, with

lower oceanic influences from the west, Mediterranean ones from southwest

and stronger continental-excessive ones from the north-east.


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The Romanian Energy Potential and Targets

The targets presented in the Romanian National Plan of Action

for Renewable Energy (PNAER) for the percentage of

electricity produced from renewable energy sources are the

following: 35% for the year 2015 and 38% for 2020.


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Solar energy

Solar energy shows a moderate potential throughout the entire

territory of the country, but the most abundant solar

resources are located in the southern part of the country and

Dobrogea. Considering solely the solar electricity potential, its

potential is approximately 1.2 TWh.


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Solar irradiation

The solar irradiation in Romania is one of

the best in Europe. Its central and south-

east parts have highest indicators of solar

irradiation up to 1650 Kwh/m2(1450

1750 kWh / m2). It has underdeveloped

rural territories and uncultivated aerieswhich can be used for developing PV

plants. The performance of solar PV

technology has become increasingly

efficient after 2009.


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Romanian energy market: risks and

opportunities

1. STRENGHTS competitive advantages

Long tradition in the energy industry

Moderate potential for exploiting the renewable resources

Total liberalization of electricity markets

2. WEAKNESSES

system deficiencies

facilities are partly obsolete having an outdated technology

Lack of financial measures to support projects and programs

concerning the growth of the energy efficiency and to the use of

renewable energy Organization of the electricity generation sector on single-

technological pathways


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Romanian energy market: risks and

opportunities

3. OPPORTUNITIES

Attractive investment climate for both foreign and domestic

investors

Increased investment opportunities in the field of energy efficiency

and unused renewable energy resources to the EU structural funds projects in the field of energy efficiency

4. THREATS - Risks and vulnerabilities

Lack of effective fiscal instruments for supporting investment

programs in energy efficiency Possible negative effects on the competition in the European energy

sector

A high growth rate in energy demand in the context of economic

recovery


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Green certificate system


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Green certificate system

Electricity suppliers have the obligation to purchase a certain quota of

renewable electricity set by Romanian Energy Regulatory Authority

(ANRE) proportionally to the amount of electricity sold yearly to their final

consumers. Completion rates are proved by holding a corresponding

number of green certificates acquired under the law.

The annual minimum and maximum values for Green Certificates trading is

27 and 55 euro/certificate, respectively, calculated at the exchange rate

established by the Romanian National Bank for the last working day of the

December of the previous year.


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Green certificates system

Renewable Energy Source TGCs per MWh Energy produced TGCs per MWh

Energy Energy SourceRenewable Energy SourceProduced

Wind 2 till 2017

Small Hydro Plants (


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EU Regulatory Framework for Renewable Energy

and Quotas

LAW 220/2008

Sets new shares of electricity produced from RES in the gross final

national consumption of electricity in perspective of 2010 and 2020 to

35%, respectively 38%

Extension of green certificate system beyond 2012 with a mandatory

quota of green certificates of 16.8% for 2020 and other intermediate

quotas for the period 2008 2020


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EU Regulatory Framework for Renewable Energy

and Quotas

Law 139/2010 Enter into force 9.07.2010

Supplementing Law 220/2008

Focused more on wind energy

Two years extension of the term when wind energy is granted two

green certificates instead of one

Inflation adjusted price of certificates and the opportunity for

individuals to develop projects with capacity of up to 100 KW

Disadvantage: does not provide for a solution in case the number ofgreen certificates would be higher than the demand


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EU Regulatory Framework for Renewable

Energy and Quotas

Emergency Ordinance 88/2011 Defining terms which have been subject of public debate

Clarifying the green certificates system (issuance, trade and price

adjustment, beneficiaries, number of GCs granted, possible

accumulation with other subsidies, validity )

Expanding the producers rights and obligations

Indicating the procedural rules regarding cooperation by joint

agreement

Reaffirming ANREs major role

Differentiating the access to the grid


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National target quota

Renewable energy production remains at less than 33% of the National Target Quota

It is predicted that TGC pricing will remain in a band of EUR 48-55

As Renewable Energy production above 65% of the National Target Quota

becomes closer to the Mandatory quota targets, the TGC market will graduallysoften until 85% of quota when prices may fall to the lower end of the TGC price

range (EUR 27).


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Main actors

1. ANRE (Romanian Energy Regulatory Authority)

Approves electricity producers which use eligible renewable

energy sources (RES), to participate on the Green certificate

market.

It controls the mandatory quota fulfillment by the suppliers and

applies penalties for quota non-fulfillment.


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Main actors

2. Transelectrica (The transportation and system

operator)

Receives monthly notifications concerning the quantities of

electricity from RES delivered into network from theproducers and the Network operators where the producers

are connected

Collects the penalties for non fulfilment*

Transelectrica is a joint stock 100% state - owned company* penalties are allocated early by ANRE, based on objective criteria, for investments meant to facilitate

the access to the transport/distribution networks


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Main actors

3. OPCOM (Romanian electricity market operator)

The mission of OPCOM consists of providing an organized

framework for electricity commercial trades. It is the legal

person which assures Green certificates trading and

determines the prices on the Centralized Green certificates

market, performing the functions established by the

Regulation for organizing and functioning of the Green

Certificates Market.


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Conclusion

Romania provides more attractive energy market comparing to

those in Bulgaria. The risk for investment however is much

higher.

There is a strong possibility that a new energy law will be

introduced within the next year by the Romanian parliament,

which should be more precised and accurate, in order to set a

stable framework for the future development of the energy

market and assure considerable investment flow.

renewable energy in romania

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