The Romanian government has not yet approved a renewable energy law that would provide state aid through green certificates due to concerns it could significantly increase electricity bills. The renewable energy association AREE estimates the price impact would be 4.76% while the government fears an 8% increase. The legislation is meant to support renewable energy projects and investors by allowing them to sell green certificates in addition to the energy produced, but the national energy regulator estimates the policy could make Romanian electricity bills 10 billion euros higher by 2020.

1. News October 4th, 2011
AREE: Government has not yet approved
renewable energy law because it fears of
energy price rises
Government has not yet
approved law granting
state aid by green
certificates for renewable
energy because it fears of
much impact on electricity
bills, said Tuesday Ionel
David, public affairs
consultant of Romanian
Wind Energy Association
(AREE).
"This law will be discussed in the ruling coalition; there are concerns at the political level that the
impact of the price will be 8%. AREE estimated that the impact will be only 4.76%. We sent these
calculations to Prime Minister and Minister of Economy", David said in a seminar on energy.
According to calculations by the National Authority for Energy Regulation
(AREE), Romania's electricity consumers will pay €10 billion in addition to bills
by 2020 to support investments in renewable energy.
AREE estimated in August, after getting opinion from the EC, the law would be applicable in
September, which however did not happen. Also, AREE considers that electricity prices paid by
consumers would increase by 10% next year due to law enforcement.
Legislation supports renewable energy projects through green certificates, which allow investors
return on investment. Green certificates are issued for electricity produced from renewable sources
and supplied to consumers. Thus, an investor makes money by selling both energy and green
certificates as they are traded on the market, because electricity suppliers are obliged to buy the
annual quota. This support scheme has already been approved by the European Commission.
According to David, an installed capacity of 1 GW in wind brings state and local budgets €50 million
in taxes. "CEZ invests in Dobrogea over €1 billion, more than Nokia or Ford investment in Romania,
but does not produce anything tangible, visible", added David.
Support through green certificates scheme will be implemented during 2011–2021. The biggest
impact will be felt in 2016–2017, when consumers could end up paying for energy up to 30% more.
Eng. Paul Keisch Page 1