6.5 million unsold green certificates in Romania, News
Some of the biggest associations in the local renewable sectors claim they are extremely worried after the energy regulator ANRE has proposed a lower quota of the total amount of energy consumption that benefits from the green certificates.
In a joint letter submitted to the top brass in the Parliament and government, the Romanian Wind Energy Association, the Renewable Energy Producers Organization in Romania and Romanian Photovoltaic Industry Association say that the proposed quota of 8.3% for next year is below this year’s level, while according to the renewable law it should have climbed to 18 percent in 2017.
“If the mandatory quota for renewable energy is not recomputed so it grows significantly compared to the level of 2016, for ensuring the minimum income for the operation of the parks and or the reimbursement of financing for making the investments, the only result will be the total destruction of the renewable energy industry, which could see the country miss its 2020 targets. As even the ANRE has stated in the computations for the proposed 8.3 percent quota, less than 50 percent of the green certificates issued in 2017 will be sold, and if we take into account the surplus of around 6.5 million green certificates that don’t have a buyer, this figure will fall to 30 percent,” according to the letter.
The associations further state that the wind sector posted a loss of around EUR 500 million in 2014.
The players warn that the 8.3 percent quota for 2017 will bring bankruptcies in the industry and the investors might decide to sue Romania so as to recover their money.
“Not even the alternative proposal will not save industry, but on the contrary considering that through the constant delay in the issuance of green certificates on the back of lack of demand, the effect is the same which is the massive bankruptcy of the industry that will have grave consequences for the economy through lost revenues to the state budget, the loss of jobs and the increase of electricity prices and the loss of Romania’s role as an energy exporters.
In May, Romania had 2.931 MW worth of wind installations enrolled in the support scheme, according to data provided by Transelectrica, the grid operator. Solar capacities reached 1.313MW, while small hydro plants had 316MW. Biomass projects reached close over 100MW.
The associations said that the renewable sector has attracted around EUR 7 billion worth of investments.
The green certificates are sold on the energy market OPCOM. In the June trading session, 681 green certificates were sold on the market, which closed at RON 132 per certificate.
The prices of a green certificate are regulated. The floor price for this year stands at EUR 29.3, while the ceiling is EUR 59.8.
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