Romania, RES producers worried about windfall tax

, SEE Energy News

The Romanian renewable energy associations have warned that the windfall tax introduced by the Government on surplus revenues of all energy producers, except for those using fossil fuels, is not solving but rather deepening the current energy crisis.

According to the Government’s decision, the 80 % tax levied on revenues generated from the sale of electricity at prices above 91 euros/MWh, with the exception of electricity produced from coal and natural gas, is intended to fund the consumer subsidies paid to residential electricity consumers. At the same time, the green certificates are temporarily waived for industrial end uses. Both of these measures will be enforced only during the winter 2021-2022 season.

According to associations such as RWEA and PATRES, overtaxation of revenues of electricity producers from renewable sources and exempting them from paying green certificates will create serious financial problems, potential insolvencies and possibly even the cessation of renewable energy production capacities. New investments in the sector will be postponed or abandoned at a time when Romania urgently needs new electricity generation capacities.