ROMANIAN GREEN CERTIFICATES SYSTEM STATUS QUO AND PROSPECTS Radu Regman Deputy General Director Energy Efficiency Department- ANRE
TABLE OF CONTENTS I. Background of E-RES Promoting System in Romania II. New Scheme for Promoting E-RES - Law No. 220/2008 III. IV. Investment Prospects in E-RES Projects in Romania Main Impact on the Electricity Market of the New Scheme
I. Background E-RES PROMOTING SYSTEM IN ROMANIA The first E-RES promotion system was established by the Government Decision 1892/2004, and is the mandatory quota system combined with the trading of green certificates (GC); The Law 220/2008, republished, for the promotion of electricity produced from renewable energy sources reaffirms the existing system and improves it; At present the Law 220/2008 republished is in process of authorization at the European Commission (EC); Before obtaining the EC authorization GD 1892/2004 shall be applied (according to art. 6, alin. (3). din GD1479/2009); * for power plants 1 MW fix price regulated by ANRE (producer s option)
NATIONAL POTENTIAL OF RES* RES Annual potential Application Solar energy 60 PJ 1,2 TWh Thermal energy Electricity Wind energy 23 TWh Electricity Hydro Micro hydro Biomass 36 TWh 3,6 TWh 318 PJ Electricity Thermal energy Electricity Geothermal energy 7 PJ Thermal energy * GD 1069/2007 regarding the National Energy Strategy for 2007 2020
NATIONAL ENERGY STRATEGY IN THE PERSPECTIVE OF THE YEAR 2020 The Romanian National Renewable Energy Action Plan, according to the provisions of the Directive 2009/28/CE, estimates the following values for installed capacity / E-RES, for each technology: 2010 2015 2020 RES MW GWh MW GWh MW GWh Wind 560 460 3200 6614 4000 8400 Hydro - total, 6413 16590 7287 18679 7729 19768 10 MW 387 719 637 1189 729 1359 Solar 0 0 148 180 260 320 Biomass 14 67 425 2050 600 2900
II. New Scheme for Promoting E-RES - Law No. 220/2008 The E-RES promotion system shall be applied for the electricity supplied to the network, produced from: a) hydro energy used in plants with installed capacity up to 10 MW; b) wind energy; c) solar energy; d) geothermal energy; e) biomass; f) bio-liquids; g) biogas; h) landfill gas; i) sewage treatment plant gas. for the power plants/units commissioned, respectively refurbished until the end of 2016. *The E-RES promoting system is also applied for electricity generated in second-hand units / plants, if used in isolated electric power systems or commissioned before Law No. 220/2008 came into force, but no older than 10 years and according to environmental protection norms.
E-RES PROMOTING SYSTEM IN ROMANIA (2) E-RES support scheme shall not be applied to: a) electricity produced from imported industrial and/or city waste; b) electricity produced from the water previously pumped in the superior basin in the case of Pumped Storage Plant; c) electricity produced in multi-fuel power plants which use RES and conventional sources, if the energy content of the conventional fuel represents more than 75% of the total energy content used; d) electricity used for the own consumption of the plant.
E-RES PROMOTING SYSTEM IN ROMANIA (3) RES type Type of electric unit / plant Number of GC/MWh Period (years) 1. Hydraulic energy used in electric power plants with Pi 10 MW new (commissioned after January 1 st, 2004) 3 GC 15 upgraded 2 GC 10 commissioned by January 1 st, 2004 and not upgraded 0.5 GC 3 2. Wind energy new 2 GC by 2017 15 3. Biomass, biogas, bioliquids, geothermal energy, gas from waste processing, sludge fermentation gas in waste water treatment plants 1 GC as of 2018 new 3 GC 15 highly efficient cogeneration (additionally over 3 GC) 1 GC 15 4. Solar energy new 6 GC 15
E-RES PROMOTING SYSTEM IN ROMANIA (4) National E-RES targets and maximum E*- RES quotas per annum that can benefit of the promoting system in the final gross power consumption according to Law 220/2008 republished *The real annual GC quotas are established on the grounds of a methodology drawn up by ANRE based on expected realised values for the year
E-RES PROMOTING SYSTEM IN ROMANIA (5) E-RES may be sold: within bilateral contracts, to electricity suppliers or eligible consumers, at negociated prices; within bilateral contracts, to electricity suppliers which are legally obliged to buy, at the request of E-RES producers who have units 1MW*, the electricity they produced at regulated prices; on the centralized Day Ahead Market (DAM), at the price for E-RES is the market clearing price * At present, all the E-RES producers can sell their electricity within bilateral contracts, at the regulated prices (Order ANRE no 44/2007)
E-RES PROMOTING SYSTEM IN ROMANIA (6) GC are issued to E-RES producers by TSO and are sold on the GC centralized market and/or on the GC bilateral contracts market to the electricity suppliers of the endusers; The electricity suppliers have the obligation to purchase yearly a number of GC equal to the value of the mandatory annual quota for green certificates for the year in question multiplied with the amount of electricity in MWh, supplied annually to end consumers by each; ANRE has to elaborate a methodology for establishing the annual quotas of green certificates, which will be approved by order of the president of ANRE; The electricity supplier who does not meet the mandatory annual quota has to pay the equivalent of the green certificates not acquired, at 110 euro/gc. The amount resulted shall be collected by the TSO and goes to the Environment Fund in order to finance the projects of E-RES facilities with installed power of up to 100 kw developed by natural persons;
E-RES PROMOTING SYSTEM IN ROMANIA (7) Statistics 2010 Calculation elements for the mandatory GC procurement quota by electricity consumers for the year 2010: No. Indicators M.U. Calculation formula Value 1 Overall RES-E generated and supported in 2010 MWh 675.150 2 Total GC available on the GC market in 2010 GC 2.1 + 2.2 692.007 2.1. Total GC issued* GC 675.150 2.2. Total GC carried forward from the previous year GC 16.857 3 Final electricity consumption in 2010 MWh 3.1+3.2-3.3-3.4-3.5 45.388.603 3.1. Electric power generation** MWh 57.677.460 3.2 Import** MWh 731.600 3.3 Export** MWh 2.128.000 3.4 Electric power plant electricity consumption MWh 0,08*3.1 4.614.197 3.5 Electric grid electricity consumption** MWh 6.278.260 4 GC quota forecast for the year 2010 GC/MWh 2/3 0.015246 * Values achieved between January and October and values forecast for November December 2010 ** Values forecast for November December 2010
E-RES PROMOTING SYSTEM IN ROMANIA (8) Forecast 2011 Calculation elements for the mandatory GC procurement (forecast) quota by electricity suppliers for the year 2011: No. Indicators M.U. Calculatio n formula Value 1 Overall RES-E generated and supported in 2011 MWh 2.723.821 2 Total GC available on the GC market in 2011* GC 2.1+ 2.2 3.563.643 2.1. Total GC issued GC 3.563.643 2.2. Total GC carried forward from the previous year GC 0 3 Final electricity consumption MWh 3.1-3.2 46.325.586 4 GC quota forecast for the year GC/MWh 2/3 0.076926 * GC forecast to be issued in the year 2011
NEXT STEPS FOR APPLYING LAW NO. 220/2008 (1) a) Completion and issuance of ANRE regulations: i. E-RES producers qualification regulations for applying the promoting system; ii. iii. iv. GC market organization and operation regulation; Methodology for establishing the GC procurement rates per annum; Regulation regarding GC issuance. b) Promoting the Government Decisions on: i. promoting the use of biofuels and bioliquids; ii. taking over excess GC and E-RES statistic transfers; iii. regulation on the issuance of the guarantees of origin.
NEXT STEPS FOR APPLYING LAW NO. 220/2008 (2) c) Calculation of penalties for failure to achieve the mandatory quota for the year 2010 by the suppliers (April 2011); d) Obtain the authorization of the support scheme of Law no.220/2008 from the European Commission; e) Qualification of the E-RES producers to beneficiate of the promoting system according to Law 220/2008 republished (year 2011).
III. INVESTMENT PROSPECTS IN E-SRE PROJECTS IN ROMANIA Investment projects: Connection Endorsements (ATR), Concluded Connection Contracts (CR), Setting up Authorizations (AI) and Licences (L) March 2011 ATR Total of which, with CR AI L* Wind 11.709 6.563 1.082 329 Hydro 117 55 116 78 Biomass + biogas 89 7 17 25 Photovoltaic 202 44 18 1 * Already Beneficiaries of the promoting scheme
IV. MAIN IMPACT ON THE ELECTRICITY MARKET OF THE NEW SCHEME (1) 1. Exceeding the E-RES target in the final gross electricity consumption, established for the year 2020 by Law No. 220/2008 republished at 38% by approximately 1-3%; 2. Reducing CO2 emissions between 2010 and 2020 by approximately 1100-10300 thousands t CO2/year possibility of trading GC on the emission certificate market; 3. Estimated budget for applying the promoting diagram for the period 2010-2020: approximately 10.5 billion euro (GC buy-back value); 4. Increase of electricity price at the final consumer between: 2.5-33 Euro/MWh (maximum 33 Euro/MWh in 2017).
IV. MAIN IMPACT ON THE ELECTRICITY MARKET OF THE NEW SCHEME (2) The effects of applying the E-SRE promoting sheme, according to the scenarios contained in the notification addressed to the EC
For additional information: THANK YOU FOR YOUR ATTENTION! The primary and secondary legislation for E-RES - www.anre.ro, on Renewable energy sources; Information on specific procedures regarding the functioning of the green certificates market www.opcom.ro; Information on the GC issuing procedure - www.transelectrica.ro; Information on structural funds for E-RES applications - www.minind.ro