Czech utility company reports Romania to European Commission for cutting renewables subsidies

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

Romania’s decision to stop paying renewable energy subsidies for seven years has been reported to the European Commission by Czech utility company ČEZ.  

In a policy change announced in early June, effective from 1 July 2013, the Romanian government has deferred payments to renewable energy producers, as well as suspending the issue of green energy certificates which renewable energy facilities must have.

The move could impact on potentially billions of euros of foreign investment in solar, wind and other renewable energy projects in Romania.

According to a statement reported by Reuters, ČEZ claims that the retroactive rule changes being applied go against the principles of the European Union. ČEZ argued that the measures could mean the utility company’s income from the production of wind energy at its facilities in Romania will be reduced by as much as CKR1.7 billion (US$89 million) a year. ČEZ owns 600MW of wind power capacity at its Fantanele-Cogealac park, the largest onshore wind farm in Romania.

Under Romanian renewable energy law in effect since 2011, the green certificates represent a mandatory acquisition quota, guaranteeing the sale of the electricity on the certificate to end distributors. In addition to guaranteeing sale and price of electricity, the certificates themselves can be traded on the national energy market or sold to power distribution companies. This has led to accusations of artificially inflated consumer energy prices. Certificates must be obtained for each megawatt produced with renewable energy producers required to apply for new certificates every two years.

The government decided to postpone the issue of green energy certificates until at least March 2017, far beyond the suggestion of ANRE, the Romanian energy regulator. ANRE had recommended strictly capping the issue of certificates once a certain amount of electricity production had been committed to in any given year. ČEZ claims that the postponement of certificates until 2018-2020 makes it difficult to assess how much money the company would stand to lose.

Previously, a goal of producing 24% of Romania’s energy from renewable sources was set through Romania’s role as a member of the European Union and a National Renewable Energy Action Plan (NREAP) put into place. ČEZ are among a number of foreign firms that invested in the Romania renewable energy market based on the attractiveness of subsidies. Over 2GW of renewable energy, mostly wind power, had been installed in Romania by the middle of 2013, with more in the pipeline. A number of megawatt-scale solar projects have also been connected this year, with more planned.

The European Commission is reported to be investigating complaints from renewable energy producers in Romania. The commission is next scheduled to produce guidelines on renewable energy support schemes and government intervention in the autumn.

The problems facing renewable energy suppliers in Romania are echoed in the Czech Republic, where industry figures have blamed the government for taking populist measures aimed at cutting inflated consumer energy costs to an extreme where they claim the renewable energy industry is being unfairly taxed. Bulgaria is also facing a similar situation.

26 January 2022
Join this free webinar for our analysis of the growth of N-Type technology including; new capacity expansions and production output. We'll also be looking at the global manufacturing footprint with forecasts on how much product will be made outside of China this year and which companies are driving technology change across the crystalline silicon value chain.
23 February 2022
Held annually since 2016, the Energy Storage Summit Europe is the place to be for senior stakeholders in the European storage industry. Designed to accelerate deployment of storage, we examine evolving chemistries, business models, project design, revenue stacks and use cases for storage. The 2022 edition will include exclusive content around longer duration solutions, energy strategies for wide-scale deployment of EVs and "EnTech", the event which sits at the intersection of digitisation, decentralisation and decarbonation of the power system. Come to meet TSOs, DSOs, Utilities, Developers, Investors and Lenders and leave with new contacts, partners and a wealth of information.
7 March 2022
Take your chance to join the most powerful platform in the MENA region. Middle East Energy (MEE), Intersolar, and ees, the leading energy exhibitions are joining hands to co-deliver an outstanding renewables and energy storage event at Middle East Energy 2021. Renewables and energy storage at MEE is the largest gathering of solar and renewable energy industry professionals in the Middle East & Africa, offering the most effective trade focused platform to international manufacturers and distributors looking to meet regional buyers.
8 March 2022
As Solar Finance & Investment enters its ninth year, we sit on the cusp of a new power market with solar at its heart. The 2022 edition of the event will build on our years of expertise and relationships to bring investors and lenders together with top developers. Connect with leaders in the field and use exclusive insights to drive investment and development decisions for the future. Meet new and existing project partners at the largest gathering of European solar investors and lenders.
23 March 2022
When it comes to storage, the US market exceeded a gigawatt of advanced energy storage installations (weighted towards lithium ion) at 1.46 GW, more than the previous six years in total! An exponential growth rate could see the market hit 7.5 GW p.a. by 2025. The summit will provide a wealth of content around this vital piece in the US power puzzle, with sessions dedicated to explore how companies are making money from batteries, the latest chemistries and their applications as they apply to different use-cases. We ask how investors can match ESG criteria to batteries and we will bring case studies of successful deployment and project execution onto the stage to examine how you can ensure your own projects are successful.
29 March 2022
Now in its 10th sell-out year, Large Scale Solar returns to Lisbon in 2022. We are excited to gather together face-to-face with the European solar industry as we provide unique and exclusive access to a powerful selection of the market's key stakeholders. Join this elite summit to find out how the market is maturing, which new markets are becoming more exciting, how technology is evolving and who's driving the market forward into the 2020s. Always senior, packed with developers, EPCs, utilities and investors this is the event for companies serious about European solar PV.

Read Next

January 21, 2022
Toronto-based renewables developer Amp Energy has closed on a US$350 million credit facility to advance on a global portfolio of renewables and battery energy storage assets.
January 21, 2022
India is at risk of a supply and demand mismatch for solar equipment if domestic PV manufacturers are unable to meet the quantity and quality required by project developers, Fitch Solutions has warned.
January 21, 2022
The European Commission has launched a public consultation on solar energy on the continent as it continues preparations to publish its solar strategy later this year.
January 21, 2022
US solar installer SunPower is to be hit by a cracking issue discovered in connectors associated with equipment installed in some commercial and industrial (C&I) projects, resulting in charges of around US$31 million.
PV Tech Premium
January 21, 2022
Greece is on track to accelerate solar deployment in the coming years, with the sector boosted by rising demand for renewable offtake agreements from corporations and clean energy policies from the EU, according to the general manager of Greek industrial group Mytilineos’s renewables business.
January 20, 2022
Mississippi authorities have expanded the state’s net metering programme to improve total compensation rates for solar customers and prioritise the adoption of distributed PV for low- to moderate-income (LMI) households.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
January 26, 2022
Free Webinar
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 8, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal