“The first assessment will be carried out by the end of June, as we are currently evaluating the projects. We will suggest to the Government to change the aid scheme where possible, and even reduce the number of green certificates,” ANRE head Zoltan Nagy-Bege said Tuesday.
Under the law, green certificates may not be sold for more than EUR55 apiece. Investors that produce solar energy receive EUR330 per megawatt hour through the aid scheme, apart from what they earn by selling the electricity they produce.
ANRE data show that solar power producers receive too many green certificates, which enables them to recover their investment too fast, in only four years.
“ANRE recommends the reduction of the number of green certificates for solar power producers starting 2013, while the Parliament wants the measure to be applied in 2014. If the European Commission finds the aid was overcompensation, beneficiaries of green certificates granted illegally will have to return them, or ANRE will have to cancel them,” Nagy-Bege explained.
“Those who believed they would recover their investment in only four years will abandon their projects. Eventually, only serious investors will remain,” said Nagy-Bege.
He added that ANRE has so far issued network connection permits for solar projects of 805 MW. Connection contracts have been signed for projects of 335 MW, more than the authority estimated in 2010.
The main problem of the green certificate aid scheme is the value of the certificates, as beneficiaries might obtain unjustified revenues.
The law supporting investments in renewable energy states investment recovery thresholds, which should not exceed 10%.
If the return rate exceeds 10% the state must intervene and reduce the number of green certificates, Nagy-Bege explained.
Investments in the production of 1 MW of solar power stood at EUR3.5 million in 2010, and the return rate was 11.6%, above the level set by the law. Meanwhile, equipment costs went down, and investments in the production of 1 MW of solar power decreased to EUR2 million, while the profit rate surged to over 22%.