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ANRE

DEPLOYMENT AND
REGULATION
OF RENEWABLE
ENERGY IN
ROMANIA

Mihaela Anton
Teodora Stoian

www. erranet.org
CONTENT ANRE

• ROMANIA OVERVIEW

• ENERGY SECTOR

• RENEWABLE TARGETS

• RENEWABLE SUPPORT SCHEMES

• RENEWABLE ACHIEVEMENTS

• FINANCING RENEWABLE EXPENDITURES

• ANRE MONITORING

• CONCLUSIONS
5th ERRA Training Course: Renewable Energy Regulation
February 19-23. 2018  Budapest, Hungary 2
ROMANIA OVERVIEW ANRE

• Romania is situated in SE Central Europe, north of the Balkan


Peninsula, on the Lower Danube and bordering on the Black Sea.
• Neighboring countries: Hungary, Serbia, Bulgaria, Moldova and
Ukraine.
• Population: 19.7 million (WB, 2016)
• Member of EU since January 1st, 2007
• Is part of the European single market, with a fast growing mixed
economy, high skilled labour force, the 16th largest in the
European Union by total nominal GDP.
• The top 10 exports of Romania are vehicles, machinery, chemical
goods, electronic products, electrical equipment, rubber, basic
metals, pharmaceuticals, transport equipment, and food products.
5th ERRA Training Course: Renewable Energy Regulation
February 19-23. 2018  Budapest, Hungary 3
ENERGY SECTOR ANRE

• The national energetic sector in Romania has to face every


challenge both at global and local level: the security of energy
supply, the increasing competition and reducing the impact on
environment.

• Romania uses nuclear power as an alternative to electricity


generation. The country has two nuclear reactors accounting 18%
of the country's electricity production. Nuclear waste is stored on
site at reprocessing facilities.

5th ERRA Training Course: Renewable Energy Regulation


February 19-23. 2018  Budapest, Hungary 4
ENERGY SECTOR ANRE

• The main challenge is the way the energy supply is secured, using
competitive and clean energy, considering the climate change, the
growing global request of energy and the uncertain future of
traditional energy sources.

• Romania fully promotes the elements of the Clean Energy Package


by integrating RES in the market, including self-consumption of
RES-E and developing support programs for RES-E, for better
integrated in the market.

5th ERRA Training Course: Renewable Energy Regulation


February 19-23. 2018  Budapest, Hungary 5
RENEWABLE TARGETS ANRE

EUROPEAN PROVISIONS
DIRECTIVE 2009/28/EC of the European Parliament and of the Council on
promoting the use of energy from renewable sources and amending and
subsequently repealing directives 2001/77/EC AND 2003/30/EC.

 Target of at least 20 % share of energy from renewable sources (RES-E) in the


Community’s gross final consumption of energy in 2020.

 The level of the national target regarding the percentage of RES-E in the final
gross consumption of energy in 2020 is 24%.

5th ERRA Training Course: Renewable Energy Regulation


February 19-23. 2018  Budapest, Hungary 6
RENEWABLE TARGETS ANRE

ROMANIAN PROVISIONS
Romanian Law no. 220/2008 transposing the provisions of the EU Directive
2009/28/EC for establishing the system to promote the production of energy from
renewable sources of energy.
 The level of the national target regarding the percentage of RES-E in gross final
energy consumption for 2020 is 24%.
 The level1 of national targets regarding the percentage of RES-E in gross final
electricity consumption:

2010 2015 2020


33% 35% 38%

1 In reaching the national targets it shall be considered the installed power generated in hydroelectric stations having
installed powers greater than 10 MW

5th ERRA Training Course: Renewable Energy Regulation


February 19-23. 2018  Budapest, Hungary 7
RENEWABLE TARGETS ANRE

The objective proposed in the revised EU Directive is to achieve at least 27%


renewable energy in final energy consumption by 2030, expecting to increase at
50% the share of electricity produced from renewable energy sources

2016 2020 - RO 2030 - UE

Energy from renewable sources (RES-E) in


25% 24% 27%
gross final energy consumption

5th ERRA Training Course: Renewable Energy Regulation


February 19-23. 2018  Budapest, Hungary 8
RENEWABLE SUPPORT SCHEMES ANRE

 2004: Romania has adopted the mandatory quota system combined with the
transaction of the green certificates in order to promote the RES-E.

 2008: Romania passed the Law No. 220/2008 for the establishment of the
promotion system of the production of energy from renewable sources.

 The legislation encountered successive changes to reinforce the balance between


producers of electricity from RES and a sustainable impact to the final
consumers, continuing to support the production of RES-E to maintain the
national target of 24%.

5th ERRA Training Course: Renewable Energy Regulation


February 19-23. 2018  Budapest, Hungary 9
RENEWABLE SUPPORT SCHEMES ANRE

5th ERRA Training Course: Renewable Energy Regulation


February 19-23. 2018  Budapest, Hungary 10
RENEWABLE SUPPORT SCHEMES ANRE

Green Certificates Deployment by Source Type


Law no. 220/2008, republished
RES* Power plant / group type EOY 2013 After 01.01.2014 Duration
GC/MWh (years)
New - entered into service in
3 - (1) GC 2.3 GC 15
1. HYDRO Jan 2004
Power Plants Refurbished  2 GC 10
Capacity ≤10 MW Unrefurbished - into service
0.5CV 3
before Jan 2004
2 - (1) GC up to 2017 1.5 GC up to 2017
New 15
1 GC begins with 2018 0.75 GC begins with 2018
2. WIND
"Second - hand" in existing
1 GC starting 2018 7
isolated systems
4.1 Biomass for all type of
2 GC + 1 GC additional for high-efficiency cogeneration
biomass-residues, Biogass,
(additional GC will be given after notice and CE approval)
3. BIOMASS Bio-liquid 15
3 GC + 1 GC additional for high-efficiency cogeneration
4.2 Energy crops
(additional GC will be given after notice and CE approval)
1 GC + 1 GC additional for high-efficiency cogeneration
5.1. Landfill gas 15
(additional GC will be given after notice and CE approval)
4. BIOGAS
5.2. Landfill gas and 1 GC + 1 GC additional for high-efficiency cogeneration
15
sewragw treatment plant gas (additional GC will be given after notice and CE approval)
5. SOLAR New 6 – (2) GC 3 GC 15

5th ERRA Training Course: Renewable Energy Regulation


February 19-23. 2018  Budapest, Hungary 11
RENEWABLE ACHIEVEMENTS ANRE

Electrical Capacity Structure


by Source Type

Coal

Hydrocarbs
27% 25%
Nuclear

Wind Electricity Structure by Source Types


6% Biomass/Biogas
12% 23%
Solar Wind Solar
1% 6% 1,2%
Biomass 11,1% Coal
Hydro
0,2% 24,4%
Nuclear
17,9% Hydrocarbs
0,3%

Gas
15,2%

Hydro
29,9%

5th ERRA Training Course: Renewable Energy Regulation


February 19-23. 2018  Budapest, Hungary 12
RENEWABLE ACHIEVEMENTS ANRE

Nominal Electrical Capacity and Electricity Produced in the Sustained RES-E


Production

MW GWh
6000 10000

9000
5000
8000

7000
4000
6000

3000 5000

4000
2000
3000

2000
1000
1000

0 0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Capacity installed in E-RES power
21 21 52 75 99 561 1226 2298 4349 4450 4662 4795 4787
plants [MW]
Electricity that benefited from the
8 23 43 132 242 677 1510 3365 6279 7859 8118 8735 8463
promotion system of E-RES [GWh]

5th ERRA Training Course: Renewable Energy Regulation


February 19-23. 2018  Budapest, Hungary 13
RENEWABLE ACHIEVEMENTS ANRE

Total RES-E Producers Accredited and


Total Power Installed, EOY 2017

Technology Power Installed Producers


(MW)
Wind 2962 67
Hydro 342* 103
Biomass 124 28
Solar 1359 576
TOTAL 4787 774

* Producers with installed power less than 10MW

5th ERRA Training Course: Renewable Energy Regulation


February 19-23. 2018  Budapest, Hungary 14
RENEWABLE ACHIEVEMENTS ANRE

Wind Potential and Capacities Distribution, EOY 2017

5th ERRA Training Course: Renewable Energy Regulation


February 19-23. 2018  Budapest, Hungary 15
RENEWABLE ACHIEVEMENTS ANRE

Solar Potential and Capacities Distribution, EOY 2017

5th ERRA Training Course: Renewable Energy Regulation


February 19-23. 2018  Budapest, Hungary 16
RENEWABLE ACHIEVEMENTS ANRE

Hydro Potential and Capacities Distribution, EOY 2017

18 MW
53 MW
52 MW
2 MW

41 MW

45 MW
74 MW
3 MW
55 MW

5th ERRA Training Course: Renewable Energy Regulation


February 19-23. 2018  Budapest, Hungary 17
FINANCING RENEWABLE EXPENDITURES
ANRE

 According to the promotion system, the producers of RES-E receive a number of


green certificates (GC) for each MWh of produced and delivered energy. This
varies between 0.5 GC/MWh and 6GC/MWh, depending on the primary source
and/or by the used technology.
 GC is granted to each produced MWh for a period of 15 years, excepting the old
hydro power plant and the plants with reused equipment, in these last cases the
period is shorter. The hydro plants with more than 10MW nominal power do not
receive GC. Based on the overcompensation provisions, the GC granted for
electricity produced with wind, new hydro and solar power plants was reduced
starting with 2014.

 The RES-E producers sell the GC on the GC market, which is independent from
the electrical energy market. The price of a GC may vary (according to provision
of Emergency Ordinance no. 24/20017) between 29.4 EUR/GC and 35 EUR/GC.

5th ERRA Training Course: Renewable Energy Regulation


February 19-23. 2018  Budapest, Hungary 18
ANRE MONITORING
ANRE

 The monitoring methodology of the promotion system of the energy from renewable energy sources by GC,
approved by the ANRE Order no. 52/2016 allow determining indicators to track the effects of GC support
scheme:
 the structure of participants in GC market;
 degree of GC tender issued on GC market;
 the number of GC available in the market to achieve the mandatory annual quota of GC acquisition;
 leverage of GC available in the market;
 the trading price of GC on the market;
 income unit of RES-E producer;
 the fulfillment of annual mandatory quota GC purchase;
 financial effort to promote RES-E;
 the GC impact in electricity prices;
 monitoring of RES-E producers for overcompensation;
 in accordance with the law the annual mandatory electricity quota is estimated (depending on the degree of
achievement of the national target and the impact on final consumer bill).

5th ERRA Training Course: Renewable Energy Regulation


February 19-23. 2018  Budapest, Hungary 19
ANRE MONITORING
ANRE

THE RESULTS REGARDING APPLICATION OF THE SUPPORT SCHEME -


achieving the national target 2005÷2016
SHARE OF RES AND SUPPORTED RES IN GROSS FINAL ELECTRICITY CONSUMPTION [%]
[%]

[GWh]
50 35.000
44 44 44
45
40 30.000
40

35 34 26.439 25.000
32 25.822 Share of RES-E supported in
31 24.782 gross final electricity
30 22.604 consumption %
20.000
25 20.116
18.851 Share of RES-E in gross final
17.721 electricity consumption %
15.000
20

14 14 14
15 10.000 RES-E [GWh]
11
10 8.735
7.859 8.118
6 5.000
6.279 RES-E supported [GWh]
5 3
1 3.365
0 676 1.509 0
2010 2011 2012 2013 2014 2015 2016
Years

5th ERRA Training Course: Renewable Energy Regulation


February 19-23. 2018  Budapest, Hungary 20
CONCLUSIONS
ANRE

Future objectives:
 To design a suitable legislative framework for promoting the RES-E in power
plants with installed capacity below 100kW (micro-capacity to satisfy local
consumption).
 ANRE will continue to focuses on:
 Monitoring of the GC market in order to ensure it’s fluidity and correct
operation;
 Maintaining a manageable impact on final consumer bill.

5th ERRA Training Course: Renewable Energy Regulation


February 19-23. 2018  Budapest, Hungary 21
THANK YOU FOR YOUR ATTENTION!
ANRE

ROMANIAN ENERGY REGULATORY AUTHORITY, ANRE


Phone: + 4 021 327 8101
Email: anre@anre.ro;
www.anre.ro
5th ERRA Training Course: Renewable Energy Regulation
February 19-23. 2018  Budapest, Hungary 22

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