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Government sets an aid scheme for biomass: 100 million euro in four years

6 October 2016
Biomass
energynomics

The Ministry of European Funds published a draft of a Government Decision which provides a support scheme totaling more than 100 million euros to support investments in energy production from less exploited renewable resources, namely biomass, biogas, geothermal.

The maximum level of support that may be granted to a beneficiary must not exceed 15 million euros for an investment project.

The total estimated budget allocated of the scheme is 100,63 million euros, equivalent in Romanian Lei, and would be made up of European funds provided by European Regional Development Fund and public co-funding provided by the state budget through the budget of the Ministry of European Funds, says the project. For 2017, an amount of over 20,1 million euros is provided, for 2018 – 30,1 million euros for 2019 – 40,2 million euros and for 2020 – 10 million euros.

“The maximum level of support that may granted to a beneficiary may must exceed 15 million euros, for an investment project. The intensity of the state aid granted under this support scheme must not exceed 45% of the eligible costs for investment projects in production capacities of energy from biomass, biogas and geothermal sources, if the eligible costs are calculated based on Art. 41 para. (6), let. (a) and (b) of the (EU) Regulation no.651 / 2014. The intensity of the state aid may be increased by 15% for investments located in assisted areas,” reads the draft.

The measures promoted by this law are expected to be realized within The Priority Axis 6 – Promoting clean energy and energy efficiency to support a low-carbon economy, specific objective. 6.1. the increase of the energy production from less exploited renewable resources (biomass biogas, geothermal), from the Big Infrastructure Operational Program 2014-2020.

The explanatory note accompanying the GD draft mentiones information from the National Strategy for 2007-2020, according to which, at present, the total annual production of energy from renewable sources is about 6550 ktoe and the unused technical potential is approximately 8000 ktoe with the following shares:

  • biomass and biogas – 47%
  • solar energy – 19%
  • wind energy – 19%
  • hydro – 14%
  • geothermal – 2%

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