The quota of electricity from renewable sources supported through GCs could be reduced this year

As anticipated, the Government intends to reduce the quota of subsidized electricity from renewable sources. Hence, according to a draft resolution of the Government, the quota of electricity which this year benefits from green certificates (GCs), will be reduced from 15 to 11.1 percent of gross electricity consumption – “For 2014 the quota of electricity generated from renewable sources benefitting from green certificates is 11.1 percent of gross final consumption of electricity”, the respective resolution states. Keeping, therefore, this quota at the level recorded last year, the impact of green certificates in billing final consumers will be the same as in the second half of 2013, namely 35 lei/MWh.

So, in 2014, the estimated mandatory quota of green certificates to be acquired by economic operators who are obliged to buy GCs is 0.237 GCs/MWh. Given that of a total of some 17.6 million GCs to be issued during this year, just over half, 10.9 million GCs, are enough to meet the maximum quota of green energy which is subsidized, it is expected to see a drop in the GCs price, possibly to the lower threshold of 29 euro/GC.

Romania supports the production of green energy, through green certificates, in order to meet the EU regulations which establish that by 2020, 20 percent of the domestic energy consumption should be covered by renewable energy. These certificates are issued by Transelectrica and are granted for free to green energy producers who in their turn, sell them to electricity suppliers who are compelled to acquire a quota of GCs as established by ANRE, the associated costs being included in the electricity bills.