Associations representing investors in renewable energy in Romania (RWEA, PATRES, RPIA and ArmHE) presented to the Ministry of Energy and to ANRE two independent studies that prove the disastrous situation in which the renewable energy producers are, announced a joint communiqué of mentioned employers’ organizations. The associations have turned the conversation to the correction of support scheme to allow retention of the renewable energy units.
The two studies helped “demonstrate again that the new calculation methodology for E-RES share in the mix is opaque, complex, unpredictable and uses a “circular” formula, with discretionary elements, making impossible the development of a market scenario, respectively of any coherent business plan”, say these association.
According to the analysis, the total net loss (consolidated level) of the wind industry in 2014 reached 2.1 billion lei, were recorded write-downs of asset values by 1.5 billion lei, and the equity value decreased by 30 % in one year. The companies also announced that two wind farms became insolvent, a condition that will become common, and the rate of return on investment of wind farms in 2014 reached a value below 1% and is decreasing.
Also, only about 2/3 of the green certificates issued in 2014 and 2015 are traded, all at the minimum price and this has only served to distort negatively both the energy market and the green certificate market, indicates the assessments made by consultants.
“In this tragic context for an industry that has invested over 8 billion Euros we consider that urgent solutions are needed to improve the situation of producers while maintaining an acceptable impact on consumers. It also requires restoration of the support mechanism to allow the sale of all Green Certificates at current minimum price set by the law, to ensure the renewables sector a stable remuneration and avoid further deterioration of the financial situation”, claim unanimously the representatives of the four Associations.
Representatives of Energy Ministry proposed amending the law and to create an interministerial working group, to amend the law 220/2008 including its notification to the European Commission. This means tackling the current problem over a timeframe of two years, of which one is an election year, and the delay will push investors towards bankruptcy with very serious effects on the national economy. Moreover, even ANRE representatives acknowledged that without the contribution of RES in the national energy system energy prices would increase greatly.