Bleak future for renewable in Romania: 30 percent of projects risk insolvency or bankruptcy, says association

Newsroom 02/03/2016 | 15:01

The trade association of renewable energy producers in Romania (PATRES) warns that green projects are struggling to generate revenue, while some of the investors could file for insolvency.

“They are impacted by a major increase of balancing costs, of trading and other taxes, being in a stage at which they support their projects with revenue from other businesses. According to our data, 30 percent of renewable producers (E-SRE) risk filing for insolvency or bankruptcy, starting this year,” said PATRES in a statement.

Marin Moise, vice-president of the association, suggested the renewable law could be amended so as to change the incentives scheme. He said that the feed-in system could replace the current support mechanism which uses green certificates.

“We admit that the impact on the consumer mustn’t grow too much and we indicate the feed-in-premium level at the price of green certificates, which would prove a basis for a normal functioning of the market, providing transparency and nondiscriminatory conditions”, said Moise.

Representatives of PATRES have met with Maroš Šefčovič, the vice-president of the European Commission for the Energy Union, and told him about the difficult market for green energy producers.

Šefčovič said he woukd talk to PM Dacian Ciolos and the minister of Energy Victor Grigorescu about the grievances of renewable producers.

PATRES has 91 member companies, whose projects have a combined capacity of over 800 MW.

According to grid operator Transelectrica, fresh renewable capacities of 124MW started operations in 2015, which is a 2.9 percent increase on the previous year. Total renewable capacities amounted to 4,400 MW, on the back of large investments in wind and solar in the past years.

Ovidiu Posirca

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