Even if the green certificates price (CV) drops, in the context of green energy quota drop to 11.1% due to the rise by 45-60% of the production, the electricity price is expected to rise. The majority of green energy producers hurry to sell their subsidies instruments, and the market is flooded by certificates, their price being on a decrease.
”The market will be flooded by green certificates, and their price will drop. The price per certificate got to EUR 28, almost to the regulated minimum”, stated for energynomics.ro Ionel David, the president of the Wind Industry Association (RWEA). If the green certificates quota accounted for 11.1% last year, and for 2014 was provided 15%, the government decided to drop to the level of 11.1% the production of this year.
Thus, the Department for Energy launched a public debate last week, on a Draft Government Decision that stipulates the reduction of the quota from 15% to 11.1% for 2014 too.
”Practically, Transelectrica will issue certificates that the producers will have nobody to sell to, in the ratio of about 25%”, stated David.
He estimates that a rise in the electrical energy price will occur on the market, although the renewable energy production is estimated to rise by more than 45-50% by RWEA, and by ANRE, by 60%. The price of related services such as transmission rose, and the producers and suppliers will rise the bills, in spite of the green energy quota drop of the total -the one reprobated by the industrial producers for the losses occurred last year and possibly in 2014, along with the natural gas price liberalization scheme.
ANRE: The green energy production will rise by 60%
The electrical energy production of Romania from renewable sources, might rise this year to 9-10 TWh, compared to 6.3 TWh, as it was last year, state the officials of the National Energy Regulatory Authority (ANRE), cited by Agerpres.
„Last year, the energy production from renewable sources was of 6.3 TWh and might rise to 9-10 TWh green energy in Romania in 2014”, stated Emil Calotă, the ANRE Vice-President, on the occasion of the presentation in Parliament of the Report related to the prices and regulated tariffs for 2013, drawn up by ANRE.
He reminded that Romania reached this year the objective assumed in front of the European Commission, that 24% of the energy consumption at the level of 2020 to be provided by renewable sources, thus the annual mandatory quotas of renewable sources will de dropped in 2014.
„Taking into account the degree for the achievement of the objective from 2020, the possibility to reconsider the annual energy quota appeared, which is happening starting from 2014. The quota drops compared to the level of 15% due to supportability reasons of the final consumers, industrial as well as households, in addition to the sustainability of the system, taking into account the need for balance of the energy system”, stated Calotă.
The energy regulated price rose by 6% on January 1, 2013
The energy regulated price rose at the national level by 6% on January 1, 2013, but dropped by 1.3% six months later, starting from July 1, stated Calotă.
According to Mr. Calotã, the main causes that led to these modifications were: the increase of costs related to electrical energy purchase pursuant to the replacement of an electrical energy quota supplied by Hidroelectrica on contracts regulated with electrical energy supplied by OMV Petrom and by the Energetic Complex, the increase of costs with the green certificates purchase from 18 lei per MWh, during the period January – July 2012, to 30 lei, during the period July – December 2012, the increase of supply costs, from 4 lei, in the first semester of 2012, to 4.2 lei, per client, during the second part of the year.
The tariffs for transmission, distribution, system and market also rose starting from January 1, 2013, the quantity of energy supplied by the classical producers dropped, as a result of an increase in production from renewable sources, but also due to the unfavourable forecasting of Hidroelectrica in terms of the quantity of energy that was going to be produced in 2013.
The ANRE report shows that the energy marked up, on the one hand, due to a rise in the price of fuel, and on the other hand, due to a rise in the prices on the spot market, pursuant to the force majeure occurred to Hidroelectrica in the context of drought.
„As a consequence, the regulated tariffs for the electrical energy provided by suppliers to the domestic and non-domestic consumers who didn’t make use of eligibility rose at the national level, starting from January 1, 2013, by 6%”, asserted Calotă.
He added that, pursuant to the amendment of the legislation in green energy sector, the regulated tariffs have been again modified on July 1, 2013, this time on the decrease by 1.3%.
The report also shows that, on the whole, the energy regulated market consumed, in 2013, the quantity 15.3 TWh.
The nuclear energy producer covered a third of this consumption, providing on the regulated market 5.3 TWh, at a price of 142 lei per MWh, accounting for the second price as amount on the regulated market.
The cheapest electricity was produced by Hidroelectrica and was sold to the regulated market at the price of 125 lei per MWh.
The hydro energy producer supplied the population and the companies from the regulated sector last year, a quantity of energy of 3.9 TWh.
The following producer in terms of importance for population is the Oltenia Energetic Complex that provided 2.4 TWh of electrical energy at a price of 190 lei per MWh.
The OMV Petrom power plant from Brazi supplied on the regulated market 1.5 TWh, at the price of 169 lei/MWh.
At the same time, Bucharest Power plants provided 1.2 TWh, by 189 lei per MWh.
Other producers that supplied the regulated market, in 2013, were the Hunedoara Energetic Complex, Termica Suceava, Oradea Power plants, Bacău Steam power plant, Arad steam power plant, Govora Steam power plant, RAAN Drobeta Turnu-Severin and Arad steam power plant, according to Agerpres.
Translated by: Silktrans