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Applications in the POIM, PA 6.2 and PA 6.4 exceed the funds available

3 February 2021
Cogeneration
energynomics

The Ministry of Investments and European projects (MIPE) has 44 projects in its evaluation, in addition to the 22 already contracted under the Large Infrastructure Operational Program (POIM), Priority Axis 6.2 – Reduction of energy consumption of industrial consumers and Priority Axis 6.4 – Increase savings of primary energy consumption produced through high-efficiency co-generation. The priority of the managing authority for POIM is to ensure “the completion of the evaluation for the grant applications received, as well as the financial resources needed to contract all projects already submitted and which will fulfill all the financing conditions laid down under the program and the applicant’s guidelines”, MIPE says in an official response to a letter submitted by the Romanian Society of Energy Auditors and Managers (SAMER).

For the time being, there is no chance of finding new money to supplement current allocations, “especially in the context in which the operational program needs to meet immediate needs to strengthen the capacity of the public health system” to deal with the emergency situation caused by the Covid-19 crisis. The authorities state that they will continue to analyze the possibilities of additional allocations and reopening of the two calls, “in case of savings in the contracted projects” and whether the implementation plans will allow the completion of new projects before the end of 2023.

Currently, under PA 6.2 – Reduction of energy consumption of industrial consumers, the eligible value of the 19 financing contracts signed, combined with the eligible value of the 33 projects under assessment 12,6 million euro, compared to an available allocation of 11,75 million euro. Applicants were invited to submit applications for funding from 17.10.2016 to 31.01.2018 and 20.03.2018 to 31.12.2020, respectively.

Beneficiaries PA 6.2 – 19 contracts signed, 33 in evaluation

However, in the latest report available on the official website, 15 approved projects with the following beneficiaries and statuses appear, at the end of 2020:

  • 3 signed in 2017 and completed in 2018 (Antibiotice, Sortilemn) and 2019 (Vel Pitar SA), respectively
  • 8 signed in 2018 and completed the following year: Azur SA, Yazaki Component Technology, Comelf, Hammerer Aluminium Industries Sântana, Zoppas Industries România, Infopress Group, Ciech Soda România, Takata România
  • 2 signed in 2019 and completed in 2020: Celco, Heineken România

The report of the Ministry of European Funds also includes the project of Industrializarea Cărnii Kosarom, signed in March 2020 and completed in October 2020, and the one signed by Cemacon SA in 2017, with the deadline for completion end of September 2021.

In total, we identify projects totaling 16,7 million lei (about 3,4 million euro), which include European funds, national funds, own contribution of the beneficiary and ineligible expenditure. It follows that the other 4 approved projects, together with the 33 projects under evaluation, according to the MIPE, amount to about 9,2 million euros.

Beneficiaries PA 6.4 – 3 contracts signed, 7 in evaluation

Under PA 6.4 – Increase savings of primary energy consumption produced through high-efficiency co-generation, the eligible value of the 3 financing contracts signed, combined with the eligible value of the 7 projects under assessment is 51,7 million euro, compared to an available allocation of 28,23 million euro. Under PA 6.4, applicants were given the opportunity to submit applications for funding in the period 17.07.2017 to 31.12.2020.

In the latest report available on the official website, there are 2 approved projects, totaling 63,5 million lei (about 13 million euro), which include the European funds, the national funds, the beneficiary’s own contribution and the ineligible expenditure. Both projects are under implementation, with deadlines for completion in May 2021 (Increase of operational energy efficiency at SC AMBRO SA Suceava through the implementation of a high-efficiency cogeneration plant – a project of 51,4 million lei) and August 2021, respectively (Optimization of the primary energy consumption within Cemacon SA by installing a high-efficiency cogeneration plant – a project of 12 million lei).

Demand is high compared to the level of funding available and project evaluation and approval are delayed. The MIPE response to the request of the Romanian Society of Energy Auditors and Managers (SAMER) suggests that there are other projects in preparation, in particular on priority axis 6.4.

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