World Small Hydropower Development Report 2013

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1 World Small Hydropower Development Report ROMANIA

2 Disclaimer Published in 2013 by United Nations Industrial Development Organization (UNIDO) and International Center on Small Hydro Power (ICSHP) UNIDO and ICSHP All rights reserved This report was jointly produced by United Nations Industrial Development Organization (UNIDO) and International Center on Small Hydro Power (ICSHP) to provide information about small hydropower. The document has been produced without formal United Nations editing. The designations employed and the presentations of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of UNIDO and ICSHP concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as developed, industrialized and developing are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process: Mention of firm names or commercial products does not constitute an endorsement by UNIDO or its partners. The opinions, statistical data and estimates contained in the articles are the responsibility of the author(s) and should not necessarily be considered as reflecting the views or bearing the endorsement of UNIDO and its partners. While every care has been taken to ensure that the content is useful and accurate, UNIDO and ICSHP and any contributing third parties shall have no legal liability or responsibility for the content or the accuracy of the information so provided, or for any loss or damage caused arising directly or indirectly in connection with reliance on the use of such information. Copyright: Material in this publication may be freely quoted or reprinted, but acknowledgement is requested, together with a copy of the publication containing the quotation or reprint. Recommended citation: Liu, H., Masera, D. and Esser, L., eds. (2013). World Small Hydropower Development Report United Nations Industrial Development Organization; International Center on Small Hydro Power. Available from

3 4 Europe 4.1 Eastern Europe Romania European Small Hydropower Association, Stream Map Key facts Population 21,848,504 1 Area 238,391 km 2 Climate Topography Rain pattern Temperate; cold, cloudy winters with frequent snow and fog; sunny summers with frequent showers and thunderstorms Central Transylvanian Basin is separated from the Moldavian Plateau on the east by the Eastern Carpathian Mountains and separated from the Walachian Plain on the south by the Transylvanian Alps Total average precipitation is over 750 mm. 2 Electricity sector overview The Romanian electricity market was fully liberalized in The Regulatory Authority for Energy (ANRE) regulates, monitors and controls the operation of the energy sector, electricity and natural gas markets under competition, transparency, efficiency and consumer protection. It implements and monitors measures of national energy efficiency and promotes the renewable energy use of end consumers. Total electricity production in the country was 60,385 GWh in 2011, 1,036 GWh of electricity was imported and 2,942 GWh were exported. Hydropower represents around 27 per cent of electricity generation (figure 1). Due to a major drought that impacted hydropower production, in October 2011, the force majeure clause was activated upon contractual hydro energy obligations. 4 Liquid Biomas Wind Gas Nuclear Hydrop Coal 0.56% 1.18% 2.07% 12.79% 18.40% 27.71% 37.29% 0% 10% 20% 30% 40% Figure 1 Electricity generation in Romania Source: Autorităţii Naţionale de Reglementare în domeniul Energiei 4 It should be noted, that nearly 3,000 MW of thermal generation capacity has been decommissioned during the past six years and that further decommissioning is expected due to modernization requirement by the European Union. 5 Small hydropower sector overview and potential In 2010, Romania had 274 small hydropower plants and a total installed capacity of 387 MW generating 719 GWh per year (see figure 2). By 2020, the aim is to double the number of plants to nearly 550 plants with a total installed capacity of 730 MW (generating 1,360 GWh). 6 SHP installed capacity SHP potential 387 MW 730 MW Figure 2 Small hydropower capacities in Romania Source: Stream Map 6 Note: Potential is based on planned capacity by Micro hydropower potential is reported to be distributed throughout Romania in four out of eight regions (i.e. Moldavia, Carpathian Mountains, Transylvania and Sub Carpathians). 3 Renewable energy policy The renewable energy target by 2020 is 24 per cent, according to its National Renewable Energy Action Plan (NREAP). 7 A tradable green certificates system exists to promote new renewable energy, particularly hydropower with capacity 10 MW, wind energy, biomass, biogas, biofuels, geothermal energy as well as solar energy. 3 Legislation on small hydropower The residual flow is imposed by the Ministry of Environment and Forests through its administration the Romanian Waters National Association (ANAR) for each site in the permit of water use. As a common requirement, the reserved flow is imposed to be greater than 10 per cent of the mean flow. 6 The support scheme is built on mandatory quotas combined with tradable green certificates. For the green electricity produced by small hydropower plants, there are three options to be sold; by bilateral contracts at negotiated prices, on the day-ahead market or to distribution companies at a regulated price which is about 31/MWh with prices in the range of until 2014 and with a minimum guaranteed price of 27 for the period 2015 to

4 Small hydropower therefore receives green certificates (GC) according to the following scheme: 3 GC/MWh for new plants for 15 years. 2 GC/MWh for refurbished plants for 10 years. 0.5 GC/MWh for old plants for 3 years. Barriers to small hydropower development In Romania, the media is portraying small hydropower as having a negative impact on the environment, leading to low public support and social acceptance for small hydropower development. 6 The Renewable Energy Framework Directive pushes forward the development of small hydropower. But at the same time, the Water Framework Directive imposes the environmental flow from defining water body statuses and protected areas which could produce a loss in energy at some sites or completely block some small hydropower development. The harmonization of the two Directives remains one of most important goals of the Romanian Government. 6 Accessed November KPMG (2012). Overview of the Romanian Electricity Sector: Development and Investment Opportunities. March. 6. European Small Hydropower Association (2012). Stream Map: Small Hydropower Roadmap. Available from 7. Beurskens, L.W.M., Hekkenberg, M., Vethman, P. (2011). Renewable Energy Projections as Published in the National Renewable Energy Action Plans of the European Member States. Energy Centre of the Netherlands. November. For new projects, the developer must have an environmental impact assessment in order to obtain the environmental permit which stipulates all the demands in respect of the environment to be fulfilled by the small hydropower developer. Stream Map recommends the creation of a one-stop shop for small hydropower investors as well as more cooperation among the Ministry of Environment and Ministry of Economy, Commerce and Business Environment, respectively Romanian Waters National Administration and Hidroelectrica, when issuing new laws, decisions, regulations and for the re-evaluation of the small hydropower potential for all rivers. 6 References 1. Central Intelligence Agency (2012). The World Factbook. Available from 2. European Small Hydropower Association (2008). Small Hydropower Energy Efficiency Campaign Action Strategic Study for the Development of Small Hydro Power in the European Union. 3. Lificiu, P. (2012). The Energy Sector in Romania Present and Future. Romanian Energy Regulatory Authority. Presentation 27 April, Available from NRE.pdf. Acessed November Autorităţii Naţionale de Reglementare în domeniul Energiei (2011). Raport 2011 privind activitatea (in Romanian). Available from 2

5 United Nations Industrial Development Organization (UNIDO) Wagramer Straße 2, 1220 Vienna Austria International Center on Small Hydro Power (ICSHP) 136 Nanshan Road, Hangzhou, Zhejiang Province, China