Sunshine Solar Energy | Renewable Market | Romania Incentive Scheme

Introduction

Rumanian approach to incentive renewables is a mix of on-going incentives and upfront CAPEX support through Public Tenders.

On-going incentives are based on a “green certificates” model. Green certificates are traded in a regulated market at a defined price range; number of certificates is differentiated by technology and they are provided for each MW produced from renewable sources.

Solar is the most incentivized technology: each MW produced assures 6 green certificates from National Authorities, allowing obtaining an interesting on-going remuneration from projects implementation.

Upfront CAPEX support is an additional opportunity for players interested in investing in renewable energy market. In fact, EU allocated more than 3B€ to Romania as structural funds for Country development in 2007-13 timeframe; 25% of them are dedicated to renewable energy market development. Moreover, National and Local Authorities are publishing a pipeline of tenders which aim to develop further renewable energy initiatives in Romania.

Romania incentive scheme

	Green Certificates model	Non-refundable CAPEX support from Public tenders
Objective	Guarantee an adequate revenue stream during investment run for a pre-defined time period	Support entry of new energy operator by co-financing initial CAPEX investment
Solution adopted	Green certificates introduction valued in a guaranteed range (27-55€ per certificate) Fixed compulsory quota from renewables	Participation at initial investment with a predefined contribution to eligible expenses (50-70% of CAPEX)
Timeframe	15 years guaranteed	Upfront contribution provided on project implementation milestones
Valorization	~0,35 €/kW produced	50% - 70% of total CAPEX investment
Approach

Romania Incentive Approach

• Government target for renewable energy usage
• Utilities obligation to purchase excess power placed on grid by solar users
• Green certificates market establishment with exchange in pre-defined price range
• Non-refundable CAPEX contribution to sustainable projects on renewables