New type of business in Romania. Production of electricity from renewable energy sources.

Why generate electricity from renewable energy sources (E-RES) in Romania?

The production of electricity from renewable energy sources (E-RES) is a high priority of now-a-days for reasons of environmental protection, increase the energy independence from imported electricity by getting a wider range of energy sources as well as for other reasons of economic and social cohesion.

Romania has large areas where solar energy plants and wind plants can be constructed with very low costs, especially on land acquisition, as well as a very large distribution network for transport of electricity.
Romania has adopted the mandatory quota system combined with the trade system, with minimum and maximum price limits legally set up for the green certificates.

The electricity from renewable energy sources (E-RES) has priority on the electricity market.
The E-RES producer may sell the E-RES on the electricity market, as any other electricity producer, obtaining the market price. For covering the entire generation costs and for obtaining a reasonable profit, the producer receives a green certificate for each MWh of electricity supplied in the electricity network. This green certificate may be traded within the price limits legally set-up.

The minimum and maximum prices of green certificates are one of the best in Europe: Euro 27 (minimum) and Euro 55 (maximum), such prices being valid until 2014.

Electricity generators are granted, under the green certificates system, a variable number of green certificates depending on the electricity source (e.g. for wind generators - 2 green certificates/ MWh until 2015 and 1 green certificate/ MWh beginning with 2016 and 4 green certificates/ MWh – for solar generators).

For each year between 2008 and 2020, the mandatory quota for E-RES the electricity suppliers have to comply with, is set up by law.

The electricity suppliers demonstrate the compliance with the quota system by the number of green certificates they buy each year. This number has to be equal to the mandatory quota value multiplied by supplied electricity quantity. If the suppliers will not comply with the annual mandatory quota, they will pay the value of the green certificates they were unable to buy.

Necessary steps for starting-up a generation capacity based on E-RES

• obtaining the authorizations and approvals needed for building-up the generation capacity,
• building up the generation capacity,
• obtaining the generation license,
• obtaining the qualification certificate for the electricity priority production,
• registration at the Electricity Market Operator (SC OPCOM SA) – for selling E-RES on the DAM (Day Ahead Market),
• registration at TSO (CN TRANSELECTRICA SA) – for obtaining the green certificates (GC),
• registration at the Green Certificates Market Operator (SC OPCOM SA) – for participating on the centralized market of the green certificates.

Our lawyers will provide full assistance with setting up operation and obtaining all the permits for producing of electricity from renewable energy sources (E-RES) in Romania.

www.lawyer-in-romania.com
office@lawyer-in-romania.com