Certificates for green energy in Romania
Following the implementation of Directive 2009/28/CE on the promotion of the use of energy from renewable sources (“Directive 2009/28/CE”), the Romanian target for the share of energy from renewable sources in gross final consumption of energy in 2020 was established at 24%.
The most significant recent amendments to be adopted by the Romanian Parliament on 2010 (currently under the procedure of being promulgated by the Romanian President) to Law no. 220/2008 for the promotion of the use of energy from renewable sources (“Law 220”) are: Romania’s targets in terms of energy produced from renewable sources reported to the gross domestic consumption of electricity have been increased in comparison to prior percentages, as follows: 8.3% for 2010; 16% for 2015 and 20% for 2020 instead of 33% for 2010; 35% for 2015 and 38% for 2020.
The number of green certificates received by the producers depending upon the renewable source that they use has been amended as follows:
- three (3) green certificates (instead of one (1)) for each 1MWh produced and delivered by the new hydropower plants and two (2) green certificates (instead of one (1)) for each 1MWh produced and delivered in the refurbished plants;
- until the end of 2017 (instead of 2015) two (2) green certificates and one (1) green certificate as of 2018 (instead of 2016) for each MWh generated using wind power;
-six (6) green certificates (instead of four (4)) for each MWh generated through solar power;
- In addition to those three (3) green certificates granted by the elder draft of Law 220/2008 for each 1MWh delivered in the electricity grid by the producers frombiomass, biogas, gas of waste fermentation and geothermal energy, the producers of electricity through high efficiency cogeneration plants will supplementary benefit of one (1) green certificate for each MWh generated and supplied.
The period for which the value of the green certificates will be traded on the market has been increased from 2008 through 2025 (instead of 2014) and as of 2011, the trading value of these green certificates will be indexed with the EU 27 average inflation rate recorded in December of the previous year by the National Energy Regulatory Agency.
The value of the green certificates which will be traded on the market has been preserved from the Law 220/2008, namely within a band with a will with minimum trading value of EUR 27 and a maximum trading value of EUT 55 per green certificate. The financial incentives for renewable energy producers such as exemption from excise tax payment, 50% tax reduction for issuance of authorizations/permits relating to the implementation of investment projects in the field, exemption or reduction of taxes on reinvested profit for a period of three (3) years from the commissioning of the project, etc. have been repealed. Any supplier that fails to fulfill the annual quota obligations must pay the equivalent value of the green certificates which were not purchased at a premium of EUR 110 for each certificate not purchased (as compared to EUR 70 under the Law 220/2008 previously).
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