Romania’s big industry seeks exemption from green energy tax

The Association of Big Industrial Energy Consumers (ABIEC) said on Monday the amount of eco-taxes they have to pay on top of the energy bill is threatening the future of local industry.

The ABIEC, whose members include steel maker ArcelorMittal Galati and cement maker Lafarge Romania, suggested Romania follow the model of more powerful EU members and exempt large consumers from paying some of the renewable subsidies.

For instance, exemption for big industry in Germany can go as high as 95 percent for the green tax, while in France it stays at 96 percent. ABIEC members seek the same levels in Romania, arguing they constantly invested in reducing their energy costs.

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The green certificate costs for big energy consumers have spiraled in the past two years as more renewable projects started operations.

According to Marian Nastase, president of the ABIEC and president of the administration board at aluminum producer Alro, solar installations rose from 48MW at end 2012 to 600 MW this September, while overall renewable capacities exceeded 3,000MW.

“Romania competed in 2 years a 10-year plan. Thus we will pay in the 2013-2020 period the maximum price for renewable energy subsidies. The price we have to pay for being the Europe’s leader on renewable energy is losing Romania’s competitivity abroad,” Nastase told reporters.

Although the government deferred this July the issuance of some green certificates through 2017, Nastase said the impact of this measure, which was welcomed by the big industry, was limited because more renewable projects went online.

Romania is expected to cut incentives for renewable projects coming online from 2014, in technologies deemed overcompensated such as solar and wind.

Alro estimates it will pay close to EUR 34 million for green certificates this year, while ArcelorMittal and Lafarge are set to pay EUR 15.4 million and EUR 10.9 million, respectively. Pipe maker Tenaris will pay EUR 3.3 million.

The four companies are expected to pay a combined EUR 30 million in co-generation tax.

“You can use these sums to build new factories from scratch, (e.n. create) new jobs and exports,” said Nastase.

ABIEC members have invested EUR 1.5 billion in Romania creating 30,000 direct jobs and another 170,000 indirectly. Their annual exports amount to EUR 1.3 billion.

Ovidiu Posirca