Friday, March 29, 2013

Romanian market regulator to tackle renewable energy support cut-down this week.


Romanian market regulator to tackle renewable energy support cut-down this week.

03/28/2013
Romania's energy market regulator ANRE will discuss the annual evaluation of the country's renewable energy support scheme on Friday, March 30, when it will also consider trimming down the size of the support given to investors in the sector, news agency Mediafax reported, quoting Zoltan Nagy Bege - a member of the regulatory committee within ANRE.
Romanian market regulator to tackle renewable energy support cut-down this week.
Romania's energy market regulator ANRE will discuss the annual evaluation of the country's renewable energy support scheme on Friday, March 30, when it will also consider trimming down the size of the support given to investors in the sector, news agency Mediafax reported, quoting Zoltan Nagy Bege - a member of the regulatory committee within ANRE. Romanian companies have increasingly complained about the surcharge paid for the support of renewable energy production. This year alone, the total support paid by end-users might rise 83% on year to EUR 588mn, power grid operator Transelectrica estimates. The number of tradable green certificates [TGC] given to renewable power producers would decrease from 2 to 1.5 or 1 for wind power; from 3 to 1.4 for micro hydropower plants; from 6 to 3.5 for photovoltaic power; and from 2 to 1.6 for biomass, according to a draft bill quoted by Ziarul Financiar daily in late February. At the same time, the maximum value of one TGC, tradable on a special exchange, would decrease from EUR 55 [subject to adjustment to HICP in the euro area] to EUR 30. Under the 220/2008 law, ANRE is supposed to evaluate on an annual basis the effects of the support scheme and reduce the support given to renewable energy generators under the tradable green certificates scheme provided overcompensation is found. The trimming-down is aimed at bringing the investors' profitability in line with the 10-12% levels stipulated in the law and is applicable only for facilities commissioned in the year after the ANRE evaluation [after January 2014 in this case]. The government however announced plans for a deeper adjustment of the support scheme under the form of capping the price of the green certificate - which requires an amendment of the law 220.

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