RWEA calls on Chamber of Deputies to unblock bilateral contracts

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Romanian Association for Wind Energy (RWEA) requests the Chamber of Deputies to reject the amendments brought by the bill (L321 / 2020) approved by the Romanian Senate on June 10, 2020, regarding the possibility of signing bilateral contracts outside the centralized market. These changes block investment in new energy production capacity, increasing Romania’s energy security risks, and limiting access for companies, municipalities and residential customers to energy from new, non-polluting sources, RWEA officials say.

“It is difficult to understand such a neglect of Romania’s energy potential, especially since, as a member of the European Union, the country is in the process of adopting the Clean Energy Package for all. In this context, European regulations, which must be adopted by each Member State, mention the obligation of states to allow, through national laws and regulations, the signing of bilateral energy contracts outside the centralized market (Power Purchase Agreements, PPAs).”

One of the major obstacles to new energy generation capacities in Romania is investor confidence, which has been severely affected in recent years by frequent changes in the legislative and regulatory framework. After the adoption of GEO 74/2020 was welcomed by companies operating in the energy field in Romania, but also by European partners, hindering beneficial changes again raises serious concerns about the legislative predictability in Romania and has no way to generate a positive effect on investor confidence.

”RWEA considers that such an amendment of the Law Package (L321 / 2020) brings a negative impact on the resumption of investments in the energy sector in Romania at a time when economic recovery is paramount, and through PNIESC Romania has assumed a well established plan of investments in new production capacities.”

In addition, the lack of investments in new competitive energy generation capacities will extend its negative impact on Romania’s energy security and the price paid by the final consumer, given the already aging generation of conventional sources and the current situation in which Romania is a net energy importer, according to official data provided by the authorities.

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