“Renewed” legislative framework on supporting the renewable energy production in Romania

November 29, 2011 at 2:26 am | Posted in Legislative Outreach | Leave a comment
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What’s in it for the small producers?

After a long consultation period with the European Commission on how to structure and organize the system for supporting the production of electrical energy from renewable sources (RES), we finally have a revised law (OUG 88/2011 – text in RO here)  that is supposed to unlock the market in Romania.  The support system for RES producers was finally structured as following:

  • green certificates allocated to big RES producers per each MW of electricity sold – number of green certificates varies based on type of  renewable source used for production
  • specific regulated prices for the energy sold by small RES producers (less than 1MW installed)

I won’t go through the changes brought by the OUG 88/2011 for the big producers since I think they were well detailed in this article ( text only in RO).

For the building industry the most interesting part is Article 14, that explains how the system should work for the small producers:

  • the renewable energy produced can be sold by the small producers (less than 1 MW installed) to the energy distributors that have licenses in that area, at special regulated energy prices (unique prices per  type of technology)
  • the  energy distributors are obligated to buy the RES energy provided by the small producers (per their request), according to the conditions established by ANRE (National Authority for Energy Regulation)
  • the special regulated prices are established by ANRE based on a specific methodology and notified to the European Commission
  • the physical persons with production units lower than 50Kw  (electricity produced at the building site, mainly for own consumption) and public authorities that own production units (funded partially or totally by Structural Funds) may benefit of special quantification/control service offered by the distributor that allows leveling the differences  (financial and quantitative) between energy delivered and consumed (net metering)
  • the  RES energy produced by small producers will have priority access to the grid

The changes for the small producers (mostly net metering and priority access) sound promising but we still have to wait for the secondary legislation mainly the methodology for establishing the energy price and technical and commercial rules that define the priority access to the grid that should be developed by ANRE.

Hopefully the full development of secondary legislation will take less than 3 years –  what we waited for the famous Law 220 to become operational. For an updated list of secondary legislation that was developed so far around Law 220 /2008 modified by OUG 88/2011 please check here (in Ro only).

Anca Bieru

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