1. Secondary legislation on renewable today and tomorrow Nicolae Opris Vicepresident, ANRE nopris@anre.ro ANRE ROMANIAN ENERGY REGULATORY AUTHORITY

2. TODAY EC/77/2001 DIRECTIVE: on the promotion of electricity produced from renewable energy sources in the internal electricity market

3. National target National target for 2010 : 33 % of internal consumption (national production +imports- exports) to be covered by electricity produced from renewable energy sources Currently:  25 – 30 % of generation is from hydro sources, depending on the hydrological factors;  about 96 % of hydro generation is in large hydro power plants and only 4% in small hydro;  wind generation is under 1 % of total production.

4. Legal framework and procedures (1) 1.Electricity Law (13 / 2007) – general provisions regarding promotion of electricity produced from renewable sources 2.Government decisions: GD 1535 / 2003 on approving the Strategy for using renewable energy sources GD 443 / 2004 on promoting renewable energy sources GD 1892 / 2004 on establishing the promotion system for electricity produced from renewable energy sources GD 1429/2004 on approving the Regulation of certifying the electricity from RES GD 958/2005 for the amendment of GD 443/2003 and for the amendment and completion of GD 1892/2004

5. 3.ANRE regulations: Procedure for monitoring the issuing of guaranties of origin Regulation regarding organization and operation of the green certificates market 4.Procedures of the Market Operator and the TSO: for issuing Green certificates for organizing the Centralized Green Certificates Market Legal framework and procedures (2)

6. Producers – certified green electricity Guarantees of origin issued by the regulator; All green energy receives Guaranties of origin, including large hydro; Guarantees of origin are used in establishing the fulfillment of national target. Promotion scheme for renewable energy sources Romania’s case (1) In 2007: 31 producers received 594 guarantees of origin from ANRE ( hydro and wind power producers) Producers – qualified for receiving green certificates Wind based generation; Biomass based generation; Solar based generation; Hydro generation in power plants with less than 10 MW installed power, put into function or refurbished starting with 2004. 1 certificate = 1 MWh of produced electricity; Certificates are issued by the TSO - Transelectrica.

7. Suppliers – mandatory quotas, obligation to buy Green certificates according to total annual electricity selling to final customers A penalizing mechanism is applied for non–compliance  63 Euro/GC – 2005-2007,  84 Euro/GC 2008-2012 Extra certificates can be used in the next year. Promotion scheme for renewable energy sources Romania’s case (2)

8. Competitive market for green certificates  bilateral agreements / contracts  centralized market organized by the Market Operator, Opcom The centralized market is organized on monthly basis Minimum and maximum price levels on the market established by Government Decision:  minimum value 24 Euro / MWh  maximum value 42 Euro / MWh Promotion scheme for renewable energy sources Romania’s case (3)

9. Green certificate system with mandatory quotas for suppliers Promotion scheme for renewable energy sources Romania’s case (4) Electricity Market Green Certificates Market Electricity Green certificates Electricity Market Price Green Certificates Price E-RES Price Expected income for promoted green electricity - market price for Green certificates: 24.... 42 Euro / MWh - market price for electricity: 40 Euro/ MW Total revenue: 60.... 80 Euro / MWh

10. Promotion scheme for renewable energy sources Romania’s case (5) INDICATORUMVALUE% 1 E-RES which benefits of suport scheme = number of GC issuedMWh46299100.0 1.1 - hydroMWh3875083.7 1.2 - windMWh754916.3 Results 2007 Expectations : - 300 MW wind – establishment authorisation - 12000 MW under study for connecting to the grid Source:OPCOM SA

11. TOMORROW

12. National targets According to GD 1069/2007 on approving the National Energy Strategy: - 2015 - 35% electricity produced from renewable energy sources from internal consumption (national production + imports – exports) - 2020 - 38% According to the project of the new Directive for renewable promotion – January 2008: - The share of energy produced from renewable sources in the final domestic energy consumption in year 2020: 24 % (electricity, heat and biofuels)

13.  Provisions regarding the applying of the existent support system after 2012;  Provisions regarding the life time of the support system in accordance with some specific criteria (such as: the age of the plant, existence/non-existence of refurbishments);  Stimulation for photovoltaic electricity;  Special provisions for consumers which have E-RES installations dedicated mainly for their own consumption and who can buy/sell electricity from/to the suppliers, according to the availability of the RES used;  Provisions for importing/exporting GC;  Provisions regarding E-RES trading, increased values for GC;  Creating the possibility to change the destination of the amount of money collected from the suppliers for quota non-compliance. Legislative projects: Draft for GD for establishing the support system for electricity produced from renewable energy sources (2008-2020)

14. The proposal for new Directive for renewable promotion National Action Plan for achieving the target Access to the network for a significant volume of new renewable Investments in infrastructure Maintaining the security of supply – a sufficient reserve in flexible conventional generation Transfer/trading of GoOs, issuing GoO for heating and cooling (P> 5 MW), targets accomplishment

15. European funds for promoting renewable energy Ministry of Economy and Finance – (http://oie.minind.ro) Operational program “Increase of economic competitiveness ” – European Fund for Regional Development – Priority axis 4 – Increasing energy efficiency and security of supply, in the context of combating climate change Goal – Promotion of renewable energy sources for green energy generation – Objective – to support new investments in generation capacities using biomass, hydro energy (generation capacities with an installed power equal or less than 10 MW), solar energy, wind energy, biofuels, geothermal sources and other Expected project offers : August 11, 2008 – September 30, 2008 Eligible activities : field acquisition, construction of buildings and equipments acquisition, works for connection to the networks Minimal value of a project : 100,000 Euro Maximal value of a project : 50.000.000 Euro (including VAT) The maximal value of the public contribution : 200.000.000 Euro Co-financing: For small enterprises : 70%, with the exception of Bucureşti Ilfov region where the maximum value of the finance is 60% ; For medium-sized enterprises : 60%, with the exception of Bucureşti Ilfov region where the maximum value of the finance is 50%; For large enterprises: 50%, with the exception of Bucureşti Ilfov region where the maximum value of the finance is 40%. To support the program : The Romanian Government issued the Government Decision no. 750/09.07.2008 for approval of the Regional State aid Scheme fpr using renewable energy sources

16. Ministry of Environment and Sustainable Development – Environment Fund (www.afm.ro) The finance value : minimum 14,000 Euro and maximum 56.000.000 Euro Co-financing : 50 % (for economical operators) or 60% (for local authorities), from eligible costs of the project Financing: Maximum 24 month starting with date of contract conclusion Approved projects in 2007: Micro hydro power plant, biomass projects and wind power plants

17. Measures to encourage building of new wind generation capacities Improvement of the wind forecast and development of a forecast center Introduction of a intra-day market in order to reduce the forecast intervals to 4 hours Development of control capacities (cogeneration power plant) with the support of the wind investors Attract of funds for network development in order to evacuate the power from areas with high density of wind power plants

18. Thank you for your attention!