Romania was added to the CAI a year ago, when we reported on its revised renewable energy law which represented a very attractive renewable energy scheme. Its application, however, has been stalled since 2008, resulting in uncertainty for current investors and discouraging potential new ones.
It is, however, now close to being implemented, following a European Commission review.
Key revisions following the review include:
- A reduction in the number of GCs awarded to biomass and geothermal projects from three to two, except where energy results from crops especially cultivated for biomass.
- Capacities <1MW will benefit from a FIT rather than a GC scheme.
- The GC price range will be indexed annually by ANRE against the previous year's annual average inflation index calculated for the Eurozone.
- Power plants generating over 125MW must notify the EC to be accredited by ANRE as RES-E producers entitled to GCs.
- All projects will receive 1GC for the new mandatory testing period.
The table below shows the GCs that will be awarded for each technology per MWh and the minimum and maximum value based on the GC price range of €27-€55/GC. The support applies to generators that have been qualified by ANRE and have commissioned generation capacities by end 2016.
GCs will generally be available for 15 years for generation capacities using new equipment. Wind farms will receive two GCs per MWh until 2017, and one after that.
It is hoped the new scheme will spur investment across all RES-E technologies, but wind is expected to provide the most significant growth. From only 12MW at the end of 2009, Romania had an installed capacity of 464MW at end 2010, increasing a further 34% to 623MW at the end of this September.
Czech utility, CEZ, has completed 338MW of its Fântânele-Cogealac project which, at 600MW, will be the Europe's largest onshore wind farm. In March, Iberdrola started work on its 1,500MW project, which could form the world's largest onshore wind power installation when complete in 2017. The first 80MW phase is expected to be finished by end 2011.