“Wind power investors may lose hundreds of millions of euros as a result of this decision, which they won’t find that easy to take, considering they invested based on a legislation in force,” said the Romanian Wind Energy Association, an organization of the most powerful investors in the business.
The government passed on Tuesday an emergency ordinance amending the clean energy support scheme set by Law 220/2008.
This means temporary postponement as of July 1 of the awarding of a number of green certificates for each megawatt/hour generated from renewable sources and delivered.
As a result, investors in new hydropower plants of up to 10 MW in installed capacity will get one green certificate less, as will wind farm investors, while solar PV investors will see two certificates held back.
Wind power investors should get the remaining certificates as of January 1, 2018, while hydropower plant and solar power investors should get theirs as of March 31, 2017.
This means EUR1 billion to EUR1.5 billion worth of subsidies will be postponed according to ZF’s calculations. The government therefore decided not to cut the support scheme it has repeatedly said is too generous, but delay granting part of the reward.
“The modification will be published in the Official Journal and apparently will take effect on July 1, 2013. Although there is a mention about notifying the European Commission of the new measures, it is unclear whether enforcement of some of them is suspended until the European Commission rules on them or not,” says Monica Cojocaru, partner with law firm Schoenherr si Asociatii.
CEZ, Enel, Energias de Portugal and Iberdrola are the largest clean energy investors in Romania and they will be the most affected by the legislative change.
CEZ has invested EUR1.1 billion in the Fantanele-Cogealac wind farm, the largest of its kind in Romania and in Europe. CEZ officials had not provided any comment by the time the story was ready for posting.
Enel has invested EUR650 million in about 500 MW of wind farms and announced expansion into solar PV investments this year. It did not comment, either.
Energias de Portugal has invested EUR525 million, while Iberdrola has a EUR120 million wind farm.
“They are processing the information and creating scenarios. After investing significant resources into the Romanian portfolio, it can only be expected that investors would not make a decision overnight. It has to be said, though that the lack of a predictable investment environment is discouraging,” Cojocaru added.
Some investors, however, say they will go ahead with their plans despite the support scheme amendment.
“We are waiting for the permit from ANRE (the energy market watchdog) to begin work on a 108 MW wind farm that can be expanded to 192 MW. The investment is being made in Rahmanu (Tulcea County in SE Romania),” said Adrian Goicea, country manager of Iberdrola Romania, which already has an 80 MW wind farm in Mihai Viteazu, Constanta (the county south of Tulcea).
(English version by Loredana Fratila-Cristescu)