ROMANIA

Solar energy was credited by many specialists as being the next energy boom after wind turbines had conquered almost the whole of Dobrogea (SE Romania).

The support scheme of the Romanian government for such projects was the main drawing point, since solar energy receives the highest subsidies in the renewable energy sector. But the joy has only lasted for a few months, writes Business Magazin.

“The number of green certificates will be cut as of January 2013. There is no official information, but this would be the conclusion of market talk so far,” said Robert Cruceru, executive manager of the Romanian Association of the Photovoltaic Industry (RPIA).

The green certificate is at the centre of the entire support scheme put together by the Romanian state for renewable energy.

Since green projects are more costly than conventional energy generation projects, the Romanian state found a way to support the renewable sector, considering that by 2020, Romania’s green energy consumption should account for 38% of the overall consumption of energy, according to EU regulations.

For every MWh of clean energy, producers were rewarded with one single green certificate until the end of last year, irrespective of the technology used -wind, solar, or hydro-power.

The price of a certificate ranges between EUR27 and EUR55. For wind energy, one green certificate was enough, but for other investors, such as those in solar energy, one certificate proved insufficient, and the solar industry did not grow almost at all.

But since November 2011, after three years of talks, each form of green energy started to be rewarded with a different number of certificates.

At the time, solar energy was the main winner, being awarded six green certificates per each MWh, although originally it was supposed to receive only four.

The miracle lasted for a few months

The miracle did not last long and there is already talk about cutting the number of certificates to four, especially since the cost of equipment fell significantly from EUR4 million per MW to less than EUR2 million. The race against time started because only the solar projects ready by January 2013 can be rewarded with six green certificates, while for the rest of them, the dream is almost over.

“There is a fear that investors in solar energy could get exceedingly rich thanks to technological advances cutting the cost of equipment. Those who want six green certificates should not take longer than a month for the completion of the authorization process in order to have the necessary time to set up the panels and connect them to the grid by January 2013, when the support scheme is supposed to be altered,” said Horea Harsan, executive manager of ABB, one of the world’s largest providers of services and equipment for the energy industry.

Move fast

Harsan’s statements are supported by Robert Cruceru. “You have to move fast in order to receive six green certificates. By January next year they have to be connected and produce, or they risk to fall under the new support scheme,” said the representative of RPIA.

Investors have already started to hurry. Data of Transelectrica, the national energy transmission company, shows that at the end of April 79 solar farms with an overall capacity of almost 335 MW had contracts to join the grid, i.e. could start construction.

Whereas in the case of wind energy Constanta and Tulcea are the counties with the most investments, solar projects are spread throughout Romania. Of the 79 projects, over 20 are scheduled to become operational this year. This means around 87 MW, which would entail investments of EUR174 million and the data concerns only the first four months of 2012.

The sun still shines

“Those who decided to invest are already active on the market. I think we will see major transactions in the coming period and there are also new companies who want to join the market,” Cruceru also said. The expected lowering of the number of green certificates granted for solar energy is an impetus for projects to be completed this year in order to receive six green certificates. But the new regulations are not likely to dissuade investors from investing in this sector.

“As far as we can see now, a project in solar energy is still profitable, even with just four green certificates. You can’t go lower than that. If the reduction is not as drastic as to freeze investments, I think we will see a short period of stagnation from 2013 onwards, after the modification of the support system, and then investments will start again,” Cruceru concluded.

By Roxana Petrescu

Sources: ZF

(English version by Daniela Stoican)

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