Romania finally pushes button on landmark renewables law

Romania’s government has approved an emergency order allowing the introduction of the country’s long-awaited renewables legislation.

The order enables the government to implement law 220/2008, creating a regulatory framework and support scheme for the country's renewable energy sector.

Implementation has been delayed for more than two years while Bucharest awaited a decision from the European Commission over compliance with state aid rules. That process has now been completed.

The new support regime will give wind-energy producers two green certificates per MWh, plus the market price of the power they generate.

Under an existing 2007 law, wind projects receive one green certificate per MWh, but many companies have based their plans on the higher subsidy.

The green certificates can be traded on the free market and polluting enterprises are required to buy them if they exceed their carbon emissions quotas.

The incentives will be offered for a maximum of 15 years to investors entering the system no later than 2016.

“This long expected legislation sets the grounds for Romania to reach its 2020 targets and creates a clear, stable business environment,” says Dana Duica, executive director of the Romanian Wind Energy Association (RWEA).

“This is only the first step for the sector. As the market will mature, many improvements will be required. Putting in reality the many megawatts that are now on paper will not be an easy process,” she adds.

Romania currently has 750MW in installed wind capacity, according to RWEA, but this is expected to reach almost 3.4GW in 2013, making it one of the fastest-growing markets in Europe.