“There have been several issues that impeded the development of such projects. The technology needed was quite expensive and the legislation did not make it possible for developers to recover investments in due time,” said Cristian Secosan, general director of Siemens Romania.
While two years ago an investor needed about EUR3 million to install solar panels with a capacity of 1 MW, EUR2-2.5 million will now be enough, and costs continue to fall. What kept investors away from developing solar power projects was the aid scheme, which targeted only certain projects.
What is an aid scheme?
The Romanian government, as well as all EU member state governments which wanted to promote renewable energy, implemented several aid schemes. As green energy projects are costlier compared to conventional ones and the European Union set renewable energy targets to be met by 2020, member states had to apply aid schemes to support investors in the field.
Romania opted for green certificates. At the moment, for each MW of green energy, producers receive one green certificate, whose value ranges between EUR27 and EUR55. Energy producers sell green certificates to energy suppliers, who must ensure a certain amount of renewable energy for consumers.
The number of green certificates they bought indicates whether they met their quota or not. The affair entails expenses for energy suppliers, which will transfer them to beneficiaries.
Consumers are, in fact, those who support aid schemes. Moreover, investors also gain from trading energy produced on the free market, where prices are determined by supply and demand.
Subsidized investments
Things will change for the better, at least for private investors. The European Commission has recently allowed Romania to implement an aid scheme stated in Law 220/2008 which increases the number of green certificates considering the generation technology used.
The beneficiaries of these new aid schemes are solar power producers. They should receive six green certificates for each MW of energy they generate. Considering an investment of EUR2.5 million in photovoltaic panels with a capacity of 1 MW, producers will recover the money invested in about four years, once the new aid scheme is implemented.
“Dozens of projects are currently pending approval and are waiting for the aid scheme to be applied. I expect the [solar power] segment will have a great potential and will be the new trend in renewable energy after wind power,” said Secosan.
Siemens is currently in negotiations with several investors to develop solar power projects of over 10 MW.
“We won’t produce the panels. We’ll just draw up the project, including the electric part,” added Secosan. He pointed out that the advantage of solar power over wind power is predictability. Wind power generation is dependent on wind speed, which means it is highly inconstant, while solar power generation is ensured for half a day.
Photovoltaic panels can function even if the sun is not shining bright. The only condition is light. Furthermore, maintenance of solar panels is cheaper.
“Solar power generation was not as successful as wind power production, although it creates balance in the system. Photovoltaic panels generate power during the day, when demand is high, and stop at night. Furthermore, investments in solar power plants do not entail the use of large areas of land, as panels may also be installed on buildings,” said Marian Cernat, director of Transelectrica operative department.
The wind power projects that are currently being developed exceed by far the integration capacity of the Romanian network. That is why wind turbines might perturb in the future the national energy system.
According to information released by Siemens, southern Romania is the best location for solar panels, which may also be installed on office buildings or industrial buildings.
The rise of a new industry
Data provided by national power grid operator Transelectrica show that, at the beginning of October, 30 photovoltaic projects with a total capacity of about 90 MW had energy network connection contracts, an essential step to obtain license for a renewable energy project.After obtaining the contract, investors may get down to work.
Considering a capacity of 90 MW, the most advanced photovoltaic projects represent investments amounting to about EUR225 million.
Data from Transelectrica also show that early October wind farms with an overall capacity of over 8,400 MW also had network connection contracts, although the energy transporter repeatedly warned that the national energy system can’t bear more than 3,000 MW from wind farms.
Romania’s first panel maker located in Satu Mare
Romania already has a photovoltaic panel maker, but no wind turbine plant.
Last year, Cypriot group Renovatio set up a solar panel factory in Satu Mare. The investment stood at EUR10 million. The plant has a production capacity of 50 MW.
A significant part of the panels produced in Satu Mare are exported to countries that have a tradition in the field, such as Italy and Portugal. This year, Renovatio started a solar power project of 1 MW in Singureni (Giurgiu). The project uses photovoltaic panels produced in Satu Mare.
(English version by Ioana Tudor)