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Renewable energy associations alarm on the ANRE suggestion on the yearly mandatory quota set for 2017

The renewable energy industry voices its concern regarding the future of green energy in Romania, after the National Energy Regulatory Authority-ANRE suggestion to establish a mandatory yearly quota for the green electricity produced from renewable energy sources (RES-E) benefiting from the promotion system of green certificates for 2017 at 8.3 per cent of gross final consumption of energy.

2016-07-12 12:43:17

An open letter to Prime Minister signed by Ionel David, executive director of Romanian Wind Energy Association (RWEA), Razvan Lupulescu, chairman of Romanian Photovoltaic Industry Association (RPIA) and professor Viorel Lefter, president of PATRES-The Trade Association of Renewable Energy Producers in Romania.

"We repetitively signaled to Romanian authorities that the ongoing calculation of the yearly mandatory quota is neither functional or coherent. The quota value suggested by ANRE is 8.3 per cent in 2017, way below under 2016's value and below the 18 per cent level stipulated in the 220 law for 2017, the law regulating the investments made in renewable sector. The value stands for the living proof that the current regulations are not functioning. We recall the fact that renewable energy producers invested over seven billion Euro in the energy sector so far, based on a law adopted by Romanian Parliament that created legitimate expectations regarding the return of investment. Unfortunately, we note that the authorities lack in showing interest to attract new business in this sector by ignoring the already operated investments, as the investors amount massive financial losses due to the policies applied since 2013.

The investments made in the renewable sector stands for the largest category of investments in the energy sector since 1990, massively contributing to the strengthening of electric grids and spending large amount of money to meet all the technical demands asked by the network operators before and even after the accomplishment of investments.

All the involved authorities are aware of the disastrous effects of the past policies onto the industry, as all studies and information shows. If the current suggested mandatory quota is not recalculated to the level of 2016's (12.15 per cent), in order to secure the minimum amount to operate the parks and reimburse the achieved financings obtained for running the investments, the only results will be the total ruin of renewable industry, with the real risk of missing the targets for 2020. As ANRE itself mentions within the calculations stating the 8.3 per cent quota, less than 50 per cent of green certificates issued for 2017 will be exploited and given the current surplus of 6.5 million certificates which find no buyer today, his percentage will drop to around 30 per cent.

We also express our indignation regarding the "alternative proposal" of ANRE to set the mandatory renewable energy quota to 12.3 per cent which would lead to only a continuation of the policies set by the GO 57/2013, to postpone part of the revenues obtained from green certificates. Besides this measure symbolizes a lack in analyzing the impact triggered by these decisions, also means that the only identified solutions consist in successive reductions of revenues in the case of producers. It is highly unacceptable to regulate the demand deficit of green certificates amounting to 6.5 million certificates without taking into account the real reduction of the engross price of energy in the past three years- effect of the renewable resources, a fact also acknowledged by ANRE, in its annual reports.

Therefore, once again, we bring to the attention of authorities that the wind industry reported significant losses of 500 million Euro in 2014, numbers to be reflected also in the financial reports for 2015 and 2016. The recently proposal of ANRE for the 8.3 per cent quota will stand for the coup de grace given to producers of energy from renewable sources which face today a certain bankruptcy and which lead to lawsuits against the Romanian state in order to recover the losses and prejudice, besides the cease of investments with direct effect on achieving the assumed targets for 2020. Neither this measure or the alternative proposal will save the industry, on contrary, it will result in continuous delay of green certificates issuing, doubled by the lack in demand, the massive bankruptcy of the industry with major consequences onto the state budget, the increased price of energy and the loss of the current status of Romania being a country exporting energy.

Moreover, at the level of the Romanian Parliament, a new support scheme for the energy produced by biomass, biogas and geothermal resources is being suggested. Such scheme is suggested without an analysis over the costs and benefits in order to assess the positive or negative impact and before the completion of the national energy strategy, defining the energy mix intended for 2030. Not least, this scheme is suggested in the context of Romanian authorities claiming the meeting of targets assumed for 2020. We fail to understand how the current investments are being shut down through the hostile measures in the past three years while the new investors are still lured into the local renewable energy sector. This policy making is unsustainable and will result in the decisive loss of trust from investors.

Considering the above, the renewable industry representatives address a desperate appeal to Romanian authorities and Prime Minister to support the coherency and responsibility in this sector. This industry is represented by the three authorities signing this open letter and ask for an emergency reconsideration of the measures stipulated in the 220/2008 law by issuing an Emergency Ordinance stating that all the green certificates, including the postponed ones to be capitalized, as the only present measure to save the industry from bankruptcy.

We ask for setting the green certificates' price to the minimum legal value and reintroduction of the postponed certificates for an interval longer than three years, in order to protect the end users against a major impact of green certificates in the energy bill value. We also invite the prime Minister to a meeting in which we would openly and clearly discuss the current disastrous status of renewable energy in Romania and identify the correct solutions to avoid the massive collapse. We ask the Romanian State a predictable legislative frame and adequate market conditions to run the normal activities, to recover the investments and to prove that Romania is a mature European in terms of investment environment and the way of assuming the strategy on climate changes."



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