“Expectations are too high. In the absence of other projects, of agriculture and real estate opportunities, many investors thought they could start a solar energy business. (…) But if we look at the projects announced and we see what has been installed ‘correctly’, I think we are talking about a success rate of 1 out of 10,” says Doru Voicu, senior partner of IBCOenerg, a consulting and engineering company working with solar projects. Voicu has a significant background in the energy sector – he was development manager of Czech group CEZ in Romania before serving as advisor to former economy minister Adriean Videanu.
Voicu’s statements come after a whole year during which solar energy was credited with a significant growth potential thanks to the extremely generous support scheme made available by the Romanian state. On the other hand, there were a lot of legislative modifications in the meantime.
Data of national grid company Transelectrica shows that 154 solar projects with an overall capacity of around 629 megawatts were given the nod to join the grid. But Transelectrica data also shows that just 25 megawatts were operational in solar parks at the end of October in Romania.
This compares with an installed capacity of 1,775 megawatts in wind farms at the end of October, more than the country’s sole nuclear power plant in Cernavoda. Investments in wind power amounted to over EUR2.6 billion, compared with some EUR40 million in the 25-MW photovoltaic projects that are already producing.
In 2012, Romania will have an installed solar power capacity of 50-100 MW, energy regulator ANRE representative Zoltan Nagy Bege told a news conference Monday. The country’s installed solar power might increase to 500-1,000 MW in 2013 and to 1,500 MW by 2016, he added.
The lower-than-expected performance of the market comes in spite of solar energy being the form of renewable energy that gets the biggest support.
However, as of 2014, this support scheme will most likely be cut because ANRE calculations show that solar energy is overcompensated.
“In June 2010, the investment in one megawatt in a solar park cost 3-4 million euros and back then producers would get 4 green certificates,” says the ANRE representative.
But then the law was modified and now 6 green certificates are given to solar power producers, although the investment has fallen to EUR1.5 million per megawatt, he explains.
The problem is that this overcompensation of solar investments is ultimately paid for by the end consumer of energy. These green certificates are bought by electricity suppliers, which pass the cost on to consumers.
According to the legislation in force, the price of a green certificate can range between EUR27 and EUR55, with transactions currently conducted at the maximum price. In addition to receiving green certificates, producers then sell their energy on the market.
(English version by Daniela Stoican)