The number of green certificates traded on the Centralized Market of Green Certificates, managed by OPCOM (the operator of Romania’s electricity and natural gas market), dropped last year by over 73 times to 36,618 certificates compared to over 2.675 million ones traded in 2014.
According to data posted on the OPCOM website, 98pct of all transactions with green certificates were made in the first four months of 2015, whilst in May, June and July there was no transaction.
The price was 130.69 lei per certificate in the first two months and subsequently this was increased to 131.0847 lei per certificate.
The Government approved for 2016, at the proposal of the National Energy Regulatory Authority (ANRE), a share of 12.15pct of renewable energy compared to 17pct, as it was initially provided by Law 220/2008.
Renewable energy associations protested the Government’s decision to establish a smaller share of renewable energy than that stipulated by Law 220/2008, stating that they would not have anywhere to sell their green certificates and thus would go bankrupt.
Renewable energy producers receive green certificates freely, which they sell on a specialized market for an additional gain compared to the energy price. Suppliers are compelled to buy these certificates and transfers the cost to end-consumers’ bill.
According to the relevant employers’ associations, the quota approved by the Government ensures the sale of only 50pct of the green certificates that will be on the market, so producers will no more have where to sell the remaining certificates.
The Green Certificate is a form to support the electricity produced from renewable sources and certifies an amount of 1 MWh of electricity produced from renewable energy sources.
The system of compulsory quotas is a mechanism for promoting the production of electricity from renewable energy by suppliers’ purchasing a number of green certificates corresponding to the mandatory quotas of electricity generated from such sources as required by the law. The annual mandatory quota of green certificates for 2015 was 10.8pct.
The price of green certificates ranges between a maximum price a d minimum one established by a Government’s Decision. The minimum price is imposed for the protection of producers and the maximum one to protect consumers.