Green Certificates Scheme Romania

In order to promote renewable energy, Romania introduced since 2004 a quota system with tradable green certificates. The rationale of setting up a green certificates market is to bring in competition between green electricity producers. By this means, policy makers are ensuring that a given green quota is Review of International Comparative Management Volume 10, Issue 1, March 2009 36 met in the most cost-effective manner. A tradable green certificates system directs electricity generation from green sources to produce two distinct commodities: one is electricity, which is sold on the normal electricity market, and the other is represented by green certificates, which are traded on a green certificates market (NERA Economic Consulting, 2005).

General scheme of the tradable green certificates market Source: Adapted from Krook and Nouri, 2005

The mandatory quota for renewable energy in Romanian is defined in the (new) Law 220 on renewable energy and obliges that the electricity form renewable source gradually increses from 8.3% in 2010 to 20% in 2020. The law was recently (13th July 2011) approved by the European Commission and will be applied from August 1st 2011.

Year

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Quota

8,3%

10%

12%

14%

15%

16%

17%

18%

19%

19,5%

20%

Mandatory Quota Green Certificates to be purchased by DSO’s

The Law 220 also provides 2 GC’s for every MW wind power until 2018, given that the commissioning of project started before 2017. After 2018 the incentive for Wind Energy will be 1 GC per MW until 2025.

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Green Certificate scheme in the new law 220 (139/2010)

Wind 2 till 20171 from 2018 to 2025
Small Hydro Plants (<10MW) 3 for new SHPs2 for renovated SHPs
Solar PV 6
Biomass & other Biofuels 3
Geothermal 3
Hydrothermal 3

Table 7 Green Certificates Scheme 2010

Text from: Report Perspectives of investing in wind energy in Romania.

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