Project Romania

Green Certificates

 

Current Status of Geothermal Energy

Geothermal resources have been used in Romania since the 1960s. At present, 137MWt are used from 61 active wells producing hot water in the temperature range of 55-115°C. The geothermal water resources are public property according to the Romanian Constitution.

Table: Present use of geothermal resources in Romania

Space heating and hot water preparation, for domestic use 38%
Balneological and recreational purposes 30%
Greenhouse heating 34%
Industrial processes: wood drying, milk pasteurization 11%
Fish farming 2%

[Source: EBRD, REEEP]

There is a Romanian Geothermal Resources Map in the European Commission's Blue Book on Geothermal Resources.

Geothermal Energy Resource Potential

The proven reserves, including wells already drilled, are about 200 PJ for 20 years. Opportunities for geothermal development in Romania are good, but only for thermal applications. The EBRD in the Renewable Energy Resource Assessment consider application in existing district heating systems in cities nearby the geothermal resources, and new district heating schemes, and industrial and agricultural uses, as relevant.

Support Mechanisms and feed-in conditions for electricity from renewable energy sources

For the promotion of the production of electricity from Renewable Energy Sources, a system of Green Certificates is in place, including a purchase obligation for distribution companies and the obligation to fulfil an annual quota of purchased green electricity. At the end of each year, distribution companies have to deliver a certain amount of "Green Certificates" corresponding with the annual quota. Since October 2005, the certificates are being traded at the newly created electricity market administrator OPCOM. According to the Energy Law, all producers of electricity have equal access to the network. The tariffs are regularly adapted to the actual production costs by the Romanian Regulator, ANRE .

For the period 2005-2012, the annual maximum and minimum value for Green Certificates trading is 24 Euro/certificate, respective 42 Euro/certificate, calculated at the exchange course established by the Romanian National Bank, for the last working day of the December of the previous year.

 

Year Quota (%)
2005
0.7
2006
2.22
2007
3.74
2008
5.26
2009
6.78
2010
8.3

[Annual Quota for Green Electricity Certificate System. Source: OPCOM]

The Romanian government has encouraged foreign investment in hydropower through Hydroelectrica, the state-owned hydropower producer.

A minor amount of renewable energy besides hydropower has made its way into Romania's electricity generation mix. Biomass and waste incineration have been in use in Romania for many years, though not in any significant-sized generating facility. The Romanian government is planning to implement a new program for increasing the use of renewable energy that includes photovoltaics, wind energy, biomass, and geothermal energy.

The promotion of electricity produced from renewable energy sources in the internal electricity market is underlined in the provisions of the GO 63/1998 regarding the electricity and heat and also in the provisions of the Electricity Law no. 318/2003. Therefore in chapter V of Law 318/2003 named “Renewable energy sources” definitions, technical utilization and marketing conditions and facilities are announced:

  • Art. 51.: Based on this Law, the competent authority (ANRE) will regulate the technical conditions for access to the electrical network and the technical conditions for marketing the electricity and heat produced in cogeneration from renewable sources.
  • Art. 52.: Based on technical and economical studies, the development and utilization of renewable energy sources are stimulated, the facilities being granted by Government decision as a result of a proposal made by the competent authority (ANRE). The promotion of renewable energy resources it is also provided by the Energy Efficiency Law no. 199/2000.

In Romania, an indirect stimulating mechanism for utilization of renewable energy sources is regulated but the schemes for direct subvention of prices for which the producers of electricity from renewable sources are selling their product are lacking.

Therefore the Order no. 92/2002 regarding the application of Competition Council regulations, issued on the base of Law no. 143/1999 regarding the state support” adopted the “Regulation regarding the state support for environmental protection”.

In chapter 3 of this act the general conditions for authorization of state support for investments in environmental protection are provided:
  • "Investments for promoting the renewable energy sources are assimilated to the environmental protection investments achieved as a result of lacking compulsory national standards. The measures aimed to support the renewable energy sources represent one of the long-term targets that have to be especially encouraged. The base rate of support for investments made for this energy form represents 40% from the eligible costs. In the case of production capacities of energy from renewable sources that cover entirely the energy consumption of a community, the investments made can get a bonus of 10% over the base rate of 40% from the eligible costs. When the needful character of the investments is proved the supplying authority can support the investments for producing energy from renewable sources to up to 100% from the eligible costs. The respective installations will no longer benefit from other type of support."
  • "In the case of renewable energy sources the eligible costs of investment are usually the additional costs taken by the economic body in comparison with a conventional energy installation with the same energy production capacity."