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May 19, 2022

Energy Ministry’s opinion: Household consumers subsidize “wind power” by paying green certificates

The Energy Ministry considers that the subsidy offered to the renewable energy sector at the expense of Romanian household consumers and the payment of VAT for it is “unjustified”

The green certificates that every Romanian citizen pays as part of his electricity bill represent an unjustified subsidizing of “green” energy, Adrian Marin, advisor within the Energy Ministry, stated at a special conference. “Personally I don’t see why the VAT has to be paid for green certificates, the procedure being basically a subsidy from consumers for green energy. Considering they are already burdened as it is, they also have to pay VAT for these certificates. I never understood the logic behind this VAT. I repeat, this is a personal opinion,” the Energy Ministry’s representative stated.

The “green certificates” component is specified separately in the electricity bill each consumer receives at home. As a share in the bill, they represent approximately 6-7 per cent.

The national goal for 2020 is for 24 per cent of the end consumption of electricity at national level to be covered from renewable sources.

According to Energy Regulatory Agency (ANRE) data, at the end of 2014 the total number of green certificates issued as support scheme totalled 12,650,486, below the 17,591,558 that the institution estimated at the start of that year.

For 2015 the ANRE estimates the issuance of 18,147,720 green certificates, up by 3 per cent year-on-year. Romania has an installed capacity of 3,000 MW in wind farms and approximately 1,400 MW in solar farms.



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