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September 16, 2021

Disaster on green certificates market

+ Only 5,490 out of the 1.7 million GCs offered by OPCOM were sold during the March 16 trading session


 Transelectrica has issued 15.1 million green certificates (GCs) in 2015 and up until March 10 this year, however 480,820 of them expired and can no longer be traded, according to the data published on the OPCOM website. OPCOM is the operator of the centralized energy market.

Thus, the total number of GCs issued for the renewable energy produced by green certificate market participants in 2015, and transmitted to OPCOM, stood at 14,156,259 GCs, while the number of green certificates issued for the energy produced up until March 10 this year stood at 1,016,335.

At the same time, 355,892 GCs were cancelled in 2015 and 124,928 were cancelled in the first two and a half months of 2016.

The value of the certificates that expired and were cancelled stood at RON 63.3 M, representing money lost for good by renewable energy investors, according to Martin Moise, First Vice President of the Employers’ Organization of Romanian Renewable Energy Producers (PATRES).

“At the same time, the up-to-date stock of available certificates not covered by the quota is 4,303,236 green certificates, representing a value of RON 569,767,811, a stock that will grow significantly by the end of the year, based on the very small quota approved by Government and ANRE for 2016. The renewable energy disaster is also confirmed by the March 16 trading session on the Green Certificates Market, in which only 5,490 GCs were sold from over 1.7 million offered. While the authorities are doing absolutely nothing in order to improve this disastrous situation, we are wondering, with utmost concern, how long can this sector resist, a sector that is rapidly heading toward bankruptcy,” Moise pointed out.

Renewable energy capabilities reached an installed power of 5,153 MW at the end of January this year, according to Transelectrica data.

Thus, the system had wind farms with a power of 3,129 MW, solar farms with a total capacity of 1,336 MW, hydropower micro-plants of 585 MW and biomass projects with a total power of 103 MW.

At the end of last year, the system had renewable energy production capabilities of 5,142 MW according to Transelectrica.

Renewable energy producers freely receive green certificates, which they then sell on a specialized market, in order to register revenues in addition to those registered by selling the energy per se. The green certificates are paid by all Romanian consumers, including household consumers, being included in their electricity bills.

In 2016, the mandatory quota for electricity produced from renewable sources that benefits from the green certificates subsidy system stands at 12.15 per cent of the gross end consumption of electricity, according to a Government Decision adopted on 30 December 2015. This year’s quota is higher than last year’s quota (11.9 per cent).

Renewable energy producers state that the authorities’ decisions make it impossible for them to sell their green certificates, and many companies will go bankrupt in this sector as a result.



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