Romanian Green Certificates

EU legislation Directive 2009/28/EC, states that member states are to produce energy through renewable sources. For Romania the set target is 20% by 2020. Domestic Romanian legislation that concerns renewable energy consists of GD 1072/2007 and Law 220/2010.
 

Rather than feed-in tariffs, Romania has opted for a system of tradable 'green certificates' awarded for power produced and delivered to the distribution network from renewable sources.
 

Power suppliers are obliged to meet annual quotas for the purchase of green certificates related to the percentage of renewables in their total supply mix. The 'green quotas' applied to power distributors are increased under the amended law, rising in steps from 10% in 2011 to a final level of 20% in 2020.
 

The grid operator issues green certificates for renewable generation, ensuring that producers benefit both from the sale of the power itself and the value of the accompanying certificate. There is currently huge under supply with current installed capacity equal to approximately 5% of the figure required by 2020.
 

The certificates can be traded on a platform run by Opcom, the national energy market operator. The law sets a minimum value of €27 per certificate and a ceiling of €55 (US$35—$72), index-linked to inflation and guaranteed until 2025. The fine imposed on power suppliers who fail to meet their quota is equal to €110 per MW and Green Certificates to date have not traded below the ceiling price of €55. 
 

Currently these certificates are only tradable in Romania but it is widely expected that post EU approval they will become tradable throughout the EU.
 

The legislation offers various levels of incentives to different sources of renewable energy and until 1 Jan 2018 are:
 

It should be noted whilst these have been passed under Romanian legislation they still await EU approval which is expected by Summer '11.