BUSINESS

Alro presence in Romania depends on state aid for renewable energy

The position of Alro Slatina in Romania in terms of both market presence and investment on a short term depends on lowering of the value of state aid scheme for renewable energies that add important extra costs for the company, as well as on the fluctuation of the aluminium market, Alro CEO Gheorghe Dobra is quoted by Mediafax as having stated during a press conference yesterday. He added the authorities should grant aid schemes to companies investing in reducing pollution and their own electricity intensity, showing that Alro had constantly allocated funds for such objectives. ‘We are moving in the survival zone of the aluminium industry mainly because of the subsidies paid for renewable energies which distort competition and the market,’ added the Chairman of Alro Board, Marian Nastase. According to Nastase, the circumstances of the company and industry in general are becoming ‘increasingly aggressive’. ‘As far as I am concerned, we are halfway through the crisis. The question is whether we will survive it or not,’ Also official said. Last year, Alro reported preliminary losses of RON 170 M, for the first time in its history after the 2002 privatisation. Last year, Alro spent USD 44 M on green certificates, the cost of which is estimated at USD 66 M this year. The Minister Delegate for Energy, Constantin Nita, on Thursday said the Government would amend the green certificates legislation, decreasing the support given to renewable energy producers, with the argument that such projects have a small multiplication effect in the economy and translate to high consumer bills.

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