EC law to support renewable energy projects through green certificates

The European Commission (EC) has approved a law that grants incentives in the form of green certificates to investments in renewable energy projects. Law 220 was initiated by the Romanian authorities as early as 2008

September 2011 - From the Print Edition

According to Joaquin Almunia, deputy president of the EC in charge of competition policy, the law should help Romania meet its renewable energy targets by 2020, without distorting competition. Under the draft submitted to the EC for approval, green certificates will be awarded for 15 years to electrical power producers for each MW obtained through renewable sources of energy, such as wind, water (hydro power plants), solar, biomass, landfill gas and gas fermentation sludge from wastewater treatment plants. The certificates issued by the state to the renewable energy producer can be sold on to the electricity distributors that are compelled to buy them each year, in a proportion corresponding to the minimum feed-in quotas of the electricity they supply to final consumers. The quotas go from 10 percent in 2011 to 20 percent in 2020, while gross final consumption in Romania passed 45 million MWh in 2010. Under the law, if the distributors do not meet their target, they will pay penalties to Transelectrica, energy network operator. The money will be used to support small renewable energy producers. According to the EC, around 500 companies, estimated by the National Energy Regulatory Authority (ANRE), could benefit from these incentives by December 31, 2016. Under the same law, some renewable energy providers will be given priority in accessing the distribution and energy transportation network.