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September 20, 2021

Investors incur big losses on green certificates market •Share of renewable energy drops by almost 4 pc compared to initial regulations

The green certificates market is collapsing as a result of the fact that the annual share of electricity from renewable sources has been lowered from the 15 per cent level stipulated by law 220/2008 to 11.1 per cent in 2014 and from 16 per cent to 11.9 per cent in 2015. The signal was given recently by the representatives of the Organization of Renewable Energy Producers in Romania (PATRES).

“PATRES sounds the alarm again in what concerns the lack of green certificate transactions on the Green Certificates Market (GCM), a situation with very serious effects for a great part of investors in the renewable domain, especially for small and medium-size investors. In May, PATRES pointed out an unprecedented situation: for the first time not a single green certificated was traded on the GCM during the trading session on May 14, the number of sale offers standing at 111. The second situation of this kind in a month’s time was registered on June 16: zero transactions, 91 sale offers,” the communiqué reads.

PATRES representatives emphasize that 2.6 million green certificates (GCs) were available for sale in June, plus the 1.5 million GCs already issued for May (that are not yet included in OPCOM reports). Overall, the market currently has over 4 million extra GCs with no buyers.

“According to ANRE’s information, at the end of the year there will be 6 million extra GCs on the market (without buyers), plus the extra GCs left over from last year (approximately 3 million). Basically a simple calculus show that at the end of the year there will be 21 million GCs on the market and the suppliers will have to buy – according to the quota established – only 12 million GCs,” the communiqué reads.

PATRES warns that the share of 11.9 per cent, as against 16 per cent as initially established b Law 220, coupled with the 12-month maturity of green certificates, will lead to massive losses for renewable energy producers. The more so since, according to current regulations, green certificates are taxed when they are issued, not when they are actually sold.

“In these conditions, PATRES imperatively asks the relevant authorities to start a wide-ranging process of consultation in order to devise equitable and predictable market mechanisms for all market participants,” the communiqué adds.

PARES started its activity in 2014, at the initiative of a group of renewable energy producers dissatisfied with the frequent changes brought to the legislative system and with the latter’s disconnect with producers’ realities and needs.

The organization currently represents 83 companies from across the entire renewable energy spectrum (solar, wind, hydro and biomass), companies whose installed capacity surpasses 400 MW.



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