Battle for renewable energy

A draft government decision posted on the Energy Ministry’s website generates many controversies. First of all because this decision was drafted under the aegis of former Energy Minister Andrei Gerea. Secondly, because the text of the draft is so complicated that its true goal is hard to discern.

The National Regulatory Authority for Energy (ANRE) states that it has proposed for 2016 a 12.15 per cent share for renewable energy in order to maintain at the same level its impact on the end consumers’ bills.

In his turn, new Energy Minister Victor Grigorescu met energy sector associations in order to discuss the 2016 mandatory annual quota of electricity produced from renewable sources that benefits from green certificates. Representatives of renewable energy producers’ associations, representatives of electricity consumers, ANRE President Niculae Havrilet and OPCOM and Transelectrica representatives took part in the meeting.

“The main problems that the renewable energy sector faces, but also ANRE’s position on the establishment of the mandatory annual quota for electricity produced from renewable sources that benefits from green certificate subsidies were presented during the talks. According to ANRE representatives, the principle that formed the basis of setting the 12.15 per cent quota is that of maintaining at the same level the green certificates’ impact on the end consumer’s bill. Minister Victor Grigorescu offered assurances that he will analyze both the position of renewable energy market players as well as ANRE’s position, and will propose a final solution in the shortest of times. Victor Grigorescu underlined the need for the regulatory document that establishes this quota to be approved as fast as possible,” the communiqué reads.

The mandatory annual quota of electricity produced from renewable sources stands at 12.15 per cent of gross end consumption of electricity in 2016. In these conditions, the green certificates’ impact on the end consumer’s electricity bill will stand at RON 35/MWh. The draft’s explanation note points out that if the waiver agreements issued so far and those expected to be issued by the end of 2015 are taken into account then that impact will stand at approximately RON 43/MWh.

The representatives of renewable energy associations had stated in July that maintaining the green certificates quota at a very low level for the third consecutive year represents a coup de grace for many renewable energy producers. The Energy Ministry will decide what the renewable energy quota will be for 2016. And who will be favoured by this decision.

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