Transcript application of the eres support mechanism in

APPLICATION OF THE ERES SUPPORT
MECHANISM IN ROMANIA
Primary and Secondary Legislation
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Executive Summary
The legislative framework for promoting ERES in Romania is currently
complete and enforced starting November 1st 2011. In the first
week of December the producers will receive the 2 GC/MWh
corresponding to the electricity delivered into the grid during
November.
The primary legislation was modified as a consequence of the
European Commission’s (DG Competition) approval. There are 10
main amendments concerning wind energy.
The secondary legislation elaborated by ANRE is published and covers
both the procedures for accreditation of the ERES producers and
the GC market.
There are 4 pending documents to be elaborated, none of which has
an impact on the application of the law.
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Primary Legislation
• On July 13, 2011 the EU Commission approved the promotional
scheme based on Green Certificates set forth in Law no. 220/2008
• The Romanian Government approved the Emergency Ordinance
no. 88/2011 for amending and completing the Law 220/2008
(“EGO”) and it was published in the Official Gazette no. 736 on
October 19, 2011.
•
The EGO will be applied starting November 1st (the date when the
secondary legislation was published in the Official Gazette)
• The procedure requires for the EGO to be debated and validated by
the Parliament (Senate and Deputies Chamber). The first debate in
the Senate was held on November 8th.
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Primary Legislation
The main amendments brought to Law 220/2011 by EGO 88/2011
1.
Overcompensation principle introduced based on IRR (an IRR of 10.9% is
established as a reference for wind projects)
2.
Guaranteed access to the grid introduced
3.
Distinction between “accreditation” and “qualification”
1.
One (1) GC will be received during the testing period
1.
The period for which the RES-E producers benefited from GCs prior to the
applicability of Law 220/2008 will be deducted from the period of the newly
introduced promotion system
2.
New formula for cumulating EU funds or Environmental funds with GCs;
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Primary Legislation
7.
The GCs will be valid for a period of sixteen (16) months
8.
Until the national targets are achieved (i.e. 2010 – 33%, 2015 – 35%,
2020 – 38%), the sale of RES-E benefiting from the promotion system
under Law 220/2008 shall be carried out only in order to cover the
electricity energy gross final consumption of Romania
9.
GC price (EUR 27 to 55 / GC) and the penalty for un-purchased GC (EUR
110 / un-purchase GC) will be subject to indexation with the Euro zone
inflation rate announced by EUROSTAT for the previous year and not the
inflation rate of EU 27
10. Individual authorization for RES-E project with an installed capacity
higher than 125 MW
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Secondary Legislation
The secondary legislation was published in the Official Gazette and
therefore entered into force starting November 1st 2011.
• Regulation for Accreditation of the E-RES producers (Order
42/2011)
• Regulation for issuing green certificates (Order 43/2011)
• Regulation for organization and functioning of the green certificates
market (Order 44/2011)
• Methodology for establishing the annual quotas of purchasing
green certificates (order 45/2011)
The above documents can be found in English on www.rwea.ro/legislatie
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Secondary Legislation
•
The Regulation for Accreditation is the new version of the Qualification Regulation
and contains the description of the process to be followed in order for a producer
to receive the green certificates including the necessary documentation,
conditions, description of the application of the promotional system, rights and
obligations of the producers. The existing producers have 30 days to submit the
documentation in order to be accredited.
•
Regulation for Issuance of Green Certificates lists the obligations of the TSO, DSO
and economical operators (producers) during the process of issuance of GCs. It
also describes the procedure to register with Transelectrica in order to receive the
GCs.
•
Regulation for Organization and Functioning of the Green Certificates Market
applies to the participants on the GCs market and to the operator of the energy
market OPCOM. OPCOM manages the transactions of GCs trough the two markets:
the market of bilateral contracts and the centralized market. OPCOM also manages
the Register of Green Certificates and sends monthly reports to ANRE. Lastly, the
regulation provides details about invoicing and balancing payments.
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Secondary Legislation
Methodology for establishing the annual quotas of purchasing green
certificates
• A. Establishes the estimated purchasing quota of GCs for the next year by
• calculating the ERES quantity to be produced in the next year which
benefits from support mechanism,
• calculating the total number of GCs estimated to be issued in the next
year
• calculating the final consumption of electricity estimated for the next year
• B. Establishes the maximum ERES estimated to benefit from support
mechanism
• C. Establishes the purchasing quota of GCs for the current year
• D. Establishes the level of achievement of the quota and calculates the
penalties
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Pending Secondary Legislation
• “Methodology of monitoring the energy from renewable sources and of
the support mechanism” is published on ANRE website for public debates
(elaborated by ANRE, dead line for debates November 15)
• Guarantee of the intake of green certificates in excess after achieving the
quotas (currently not mentioned in any document, the only Governmental
Decision on this subject was abrogated by the EGO)
• Common agreements with other states on transferring quantities of
electricity, joint projects and harmonization of the support mechanisms
(elaborated by the Ministry of Economy, dead-line not specified)
• Regulation of issuance and monitoring of Guarantees of Origin (elaborated
by ANRE, dead-line: 3 months from entering to force of the present law)
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