Romania Taxes and incentives for renewable energy KPMG Global Energy & Natural Resources.
In Romania, the following tax incentives may be applicable to energy produced from the following renewable sources: wind, solar, geothermal, hydraulic utilized in power plants with an installed capacity of maximum 10 MW, biomass and residues fermentation gas.
The price of a green certificate has been set between the Romanian new leu (RON) equivalent of EUR29/General Certificate (GC) and EUR59/GC. Currently, the price of a green certificate is equivalent with the maximum value of EUR59/GC, since the demand of GC is higher than the offer.
The Romanian Regulatory Authority in the Field of Energy (ANRE) calculated the estimated quota of GCs acquisition for 2015 for the electricity suppliersas 0.274 GC/MWh supplied to final consumers.
Electricity Law 123/2012 and Law 220/2008 for approval of the support scheme for electricity from renewable sources (Law 220/2008) and the secondary relating legislation issued by ANRE.
The activity of production of electricity from renewable sources requires a license granted by ANRE. Such a license can be obtained by an entity by filling a request for accreditation and accompanied by a specific set of documentation.
The license is granted for a fixed term, but no longer than 25 years. In case of production of electricity from renewable sources, the maximum period during which ANRE should issue the relating license is of 30 days.
In order to promote investments in renewable electricity production capacities, a Tradable Green Certificates (TGC or GC) system has been in place in Romania since 2004, coupled with a supplier quota obligation system. Under this framework, energy producers are entitled to receive a set amount of GCs according to the amount of electricity generated and delivered by them from renewable sources. The revenue from GC sales represents additional revenue for eligible renewable producers on top of electricity sales on the market.
According to Law 220/2008, the producers of electricity from renewable sources benefit from a different number of green certificates depending on the fuel used. For example:
The support scheme is granted for a period of 3 to 15 years, depending on the age of the plants and the installed capacity. Eligible electricity producers will be able to enter the scheme only if the commissioning/refurbishment of the power plant are performed before 31 December 2016.
The annual mandatory GCs acquisition quota is established based on the quantity of renewable electricity produced and on the final electricity consumption of theprevious year, without exceeding the level corresponding to the mandatory quota for the electricity produced from renewable sources.
The quantity of electricity for which the annual mandatory GCs acquisition quota is established includes the electricity purchased by electricity suppliers for their own consumption or for the sale to final consumer, the electricity used by the electricity producers for their own consumption (other than CPT), and for the supply of end consumers directly connected to the power plant.Electricity suppliers and electricity producers previously mentioned have the obligation to acquire annually a number of GCs which is equivalent to the product between the annual mandatory GCs acquisition quota andthe quantity of electricity detailed in the paragraph above, supplied annually to final consumers.
For 2015, the estimated quota of acquisition of GCs for the electricity suppliers is 0.274 GC/MWh delivered to final consumers. Any supplier that fails to fulfill this obligation must pay the equivalent value of the GC at a premium of EUR119.7702 per each non-purchased certificate.
The GCs are issued by the transmission system operator and are valid for 12 months. The trading value of a GC has been established by ANRE as betweenthe RON equivalent of EUR29/GC and EUR59/GC. Currently, the price of a green certificate is equivalent with the maximum value of EUR59/GC, because the demand of GC is higher than the offer.
During the period 1 July 2013 to31 March 2017, trading is temporarily deferred for a certain number of GC for each 1MWh generated and delivered by the electric energy producers from renewables resources, accredited byANRE up to 31 December 2013, as follows: