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Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE [email protected] ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE [email protected] ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

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Page 1: Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

Secondary legislation on renewable today and

tomorrow

Nicolae Opris

Vicepresident, ANRE

[email protected]

ANRE

ROMANIAN ENERGY REGULATORY AUTHORITY

Page 2: Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

TODAY

EC/77/2001 DIRECTIVE: on the promotion of electricity produced from renewable energy sources in the internal electricity market

Page 3: Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

National target

National target for 2010:

33 % of internal consumption (national production +imports-exports) to be covered by electricity produced from renewable energy sources

Currently:

25 – 30 % of generation is from hydro sources, depending on the hydrological factors;

about 96 % of hydro generation is in large hydro power plants and only 4% in small hydro;

wind generation is under 1 % of total production.

Page 4: Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

Legal framework and procedures (1)

1. Electricity Law (13 / 2007) – general provisions regarding promotion of electricity produced from renewable sources

2. Government decisions:

• GD 1535 / 2003 on approving the Strategy for using renewable energy sources

• GD 443 / 2004 on promoting renewable energy sources

• GD 1892 / 2004 on establishing the promotion system for electricity produced from renewable energy sources

• GD 1429/2004 on approving the Regulation of certifying the electricity from RES

• GD 958/2005 for the amendment of GD 443/2003 and for the amendment and completion of GD 1892/2004

Page 5: Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

3. ANRE regulations:

• Procedure for monitoring the issuing of guaranties of origin

• Regulation regarding organization and operation of the green certificates market

4. Procedures of the Market Operator and the TSO:

• for issuing Green certificates

• for organizing the Centralized Green Certificates Market

Legal framework and procedures (2)

Page 6: Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

Producers – certified green electricity

Guarantees of origin issued by the regulator;

All green energy receives Guaranties of origin, including large hydro;

Guarantees of origin are used in establishing the fulfillment of national target.

Promotion scheme for renewable energy sourcesRomania’s case (1)

In 2007:

31 producers received 594 guarantees of origin from ANRE ( hydro and wind power producers)

Producers – qualified for receiving green certificates

• Wind based generation;• Biomass based generation;• Solar based generation;• Hydro generation in power plants with less than 10 MW installed power, put into function or refurbished starting with 2004 .

1 certificate = 1 MWh of produced electricity; Certificates are issued by the TSO - Transelectrica.

Page 7: Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

Suppliers – mandatory quotas, obligation to buy Green certificates according to

total annual electricity selling to final customers

A penalizing mechanism is applied for non–compliance

63 Euro/GC – 2005-2007,

84 Euro/GC 2008-2012

Extra certificates can be used in the next year.

Promotion scheme for renewable energy sourcesRomania’s case (2)

0,00%

1,00%

2,00%

3,00%

4,00%

5,00%

6,00%

7,00%

8,00%

9,00%

2005 2006 2007 2008 2009 2010 2011 2012

Page 8: Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

Competitive market for green certificates

bilateral agreements / contracts

centralized market organized by the Market Operator, Opcom

The centralized market is organized on monthly basis

Minimum and maximum price levels on the market established by Government Decision:

minimum value 24 Euro / MWh

maximum value 42 Euro / MWh

Promotion scheme for renewable energy sourcesRomania’s case (3)

Page 9: Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

Green certificate system with mandatory quotas for suppliers

Promotion scheme for renewable energy sourcesRomania’s case (4)

Electricity Market

Green Certificates Market

Electricity

Green certificates

Electricity Market Price

Green Certificates Price

E-RES Price

Expected income for promoted green electricity

- market price for Green certificates: 24 .... 42 Euro / MWh

- market price for electricity: 40 Euro/ MW

Total revenue: 60 .... 80 Euro / MWh

Page 10: Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

Promotion scheme for renewable energy sourcesRomania’s case (5)

INDICATOR UM VALUE %

1

E-RES which benefits of suport scheme = number of GC issued MWh 46299 100.0

1.1 - hydro MWh 38750 83.7

1.2 - wind MWh 7549 16.3

Results 2007

Expectations:

- 300 MW wind – establishment authorisation- 12000 MW under study for connecting to the grid

Source:OPCOM SA

Source:OPCOM SA

Page 11: Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

TOMORROW

Page 12: Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

National targets

• According to GD 1069/2007 on approving the National Energy Strategy:

- 2015 - 35% electricity produced from renewable energy sources from internal consumption (national production + imports – exports)

- 2020 - 38%

• According to the project of the new Directive for renewable promotion – January 2008:

- The share of energy produced from renewable sources in the final domestic energy consumption in year 2020: 24 % (electricity, heat and biofuels)

Page 13: Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

Provisions regarding the applying of the existent support system after 2012; Provisions regarding the life time of the support system in accordance with

some specific criteria (such as: the age of the plant, existence/non-existence of refurbishments);

Stimulation for photovoltaic electricity; Special provisions for consumers which have E-RES installations dedicated

mainly for their own consumption and who can buy/sell electricity from/to the suppliers, according to the availability of the RES used;

Provisions for importing/exporting GC; Provisions regarding E-RES trading, increased values for GC; Creating the possibility to change the destination of the amount of money

collected from the suppliers for quota non-compliance.

Legislative projects:

Draft for GD for establishing the support system for electricity produced

from renewable energy sources (2008-2020)

Page 14: Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

The proposal for new Directive for renewable promotion

National Action Plan for achieving the target Access to the network for a significant volume of new renewable Investments in infrastructure Maintaining the security of supply – a sufficient reserve in flexible

conventional generation Transfer/trading of GoOs, issuing GoO for heating and cooling (P> 5 MW), targets accomplishment

Page 15: Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

European funds for promoting renewable energy Ministry of Economy and Finance – (http://oie.minind.ro)

Operational program “Increase of economic competitiveness” – European Fund for Regional Development – Priority axis 4 – Increasing energy efficiency and security of supply, in the context of combating climate change

Goal – Promotion of renewable energy sources for green energy generation –

Objective – to support new investments in generation capacities using biomass, hydro energy (generation capacities with an installed power equal or less than 10 MW), solar energy, wind energy, biofuels, geothermal sources and other

Expected project offers: August 11, 2008 – September 30, 2008

Eligible activities: field acquisition, construction of buildings and equipments acquisition, works for connection to the networks

Minimal value of a project: 100,000 Euro Maximal value of a project: 50.000.000 Euro (including VAT) The maximal value of the public contribution: 200.000.000 Euro Co-financing:

For small enterprises : 70%, with the exception of Bucureşti Ilfov region where the maximum value of the finance is 60% ; For medium-sized enterprises : 60%, with the exception of Bucureşti Ilfov region where the maximum value of the finance is 50%; For large enterprises: 50%, with the exception of Bucureşti Ilfov region where the maximum value of the finance is 40%.

To support the program:The Romanian Government issued the Government Decision no. 750/09.07.2008 for approval of the Regional State aid Scheme fpr using renewable energy sources

Page 16: Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

Ministry of Environment and Sustainable Development – Environment Fund (www.afm.ro)

The finance value : minimum 14,000 Euro and maximum 56.000.000 Euro

Co-financing : 50 % (for economical operators) or 60% (for local authorities), from

eligible costs of the project Financing:

Maximum 24 month starting with date of contract conclusion Approved projects in 2007:

Micro hydro power plant, biomass projects and wind power plants

Page 17: Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

Measures to encourage building of new wind generation capacities

Improvement of the wind forecast and development of a forecast center

Introduction of a intra-day market in order to reduce the forecast intervals to 4 hours

Development of control capacities (cogeneration power plant) with the support of the wind investors

Attract of funds for network development in order to evacuate the power from areas with high density of wind power plants

Page 18: Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

Thank you for your attention!