Romania: Bilateral contracts for RES 5MW projects to be restored?

27. February 2015. / SEE Energy News

Parliament is preparing a new bill which will enable long-term energy bilateral contracts for owners of renewable energy projects with total installed capacity of less than 5 MW. Energy suppliers AFEER, applied for permission to enter direct bilateral contracts for renewable capacity up to 10 MW.

“There are nearly 600 renewable projects currently stuck with small capacities. Most grants were blocked in the absence of long-term firm contracts, and in the absence of underlying scheme .

Pending the regulated tariff subsidy system (feed-in tariff), most recently funded projects in the field of hydropower was virtually blocked and the only projects that have received money from banks consisted of restructuring investments.

One of the major impediments in securing financing is the lack of predictability of revenues, given the impossibility of signing bilateral contracts of energy in the long term. They were introduced by ANRE energy regulator to prevent frauds like of Hidroelectrica, where the energy was sold at low prices on long-term contracts, to intermediaries.

Last week Zoltan Nagy, a member of the Board of Regulators ANRE said that the Authority has submitted all necessary documentation Release of green energy subsidy system through regulated tariffs, but the European Commission delay a decision in this regard.

Iulian Iancu, President of the Chamber of Deputies Industries Commission, recently said feed-in tariff will be introduced in March. He also argued that Parliament will seek support and expansion of the feed-in units with installed capacity up to 5 MW.

Under the proposals of ANRE, producers of electricity from renewable sources that have an output power of up to 500 kW – 2 MW will receive subsidies in the form of regulated tariffs for the electricity system will be taken guaranteed and will be between 69.4 and 167 lei per MWh.

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