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September 29, 2020

Green energy production in chaos

Industry Committee MPs have decided to defer until the autumn the approval of the law on the adoption of the emergency ordinance postponing the granting of a major part of the green certificates to renewable energy producers. Green energy (wind, solar, hydro and biomass) production has been thrown into chaos, ‘Bursa’ newspaper notes. The MPs of the lower Chamber refused to tidy up a law that apparently has quite a few flaws, letting the Government and ANRE deal with the situation the best they can. The ordinance is supposed to come into force on July 1, but not all its provisions are immediately applicable. The postponement of the granting of a part of the certificates will be possible next week, which, at least theoretically, means that consumers’ expenditure with the renewable energy support scheme might drop by a half. ANRE is now supposed to communicate in record time to operators and Transelectrica SA the procedures for enforcing the certificate award postponement as well as to discern from the ‘salad’ of proposed measures what could still be mended by secondary legislation. As if that was not enough, the normative act has to be notified to the European Commission that – sources close to the situation say – has already warned Romanian authorities not to enforce the new legislation before receiving the favourable opinion from the relevant European bodies. As a matter of fact, green energy producers have filed a number of complaints with the Commission, claiming the act violates existing European norms and is unconstitutional. These measures indiscriminately tossed into the emergency ordinance have seriously shaken the renewable energy industry, operators threatening to take action in court. During the Parliament debates these past few days, Economy Ministry Energy Department officials who supported the act stubbornly refused to accept some of the amendments that would have shed some light upon some of the unclear provisions. For example, the rule on photovoltaic farms would have applies after January 1, 2014 rather than July 1, 2013, allowing investors the time to remove land from the agricultural circuit.

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