Romania may offer 75 mln free carbon permits to utilities starting 2013

Newsroom 16/09/2011 | 12:16

Romania’s biggest oil and gas producer OMV Petrom, should get 10.3 million free permits for its power plant in Brazi that runs on natural gas, during the 2013-2019 time-span, according to Bloomberg that quotes a statement from the Romanian Economy Ministry. Coal-fired power plants Turceni and Rovinari that are state-owned will get 11.8 million, respectively 11.6 million carbon permits for seven years, starting 2013.

The Economy Ministry has already started public consultation on the proposal to allocate carbon permits worth EUR 894 million at today’s prices and will seek an agreement from the European Commission regulators by September 30, before further planning of the transactions.

Romania won an exemption in 2008 from the EU, allowing utilities to get for free starting 2013 carbon permits corresponding to 70 percent of their average annual emission for the 2005 to 2007 period with regard to national electricity production. By 2020 power plans will have to buy all their permits at auction or in the markets.