Green certificates

Here are some important notes:

• Green certificate (REC) is a document that attests a quantity of 1 MWh of electric energy produced by renewable sources of energy. REC is a market-based instrument that certifies that the bearer owns one (1) megawatt-hour (MWh) of electricity generated from a renewable energy resource. Once the power provider has fed energy into the grid, the REC they receive, can then be sold in the open market as a commodity.
• Energy suppliers must buy REC and pay this REC to the producers of renewable energy immediately after the delivery of the energy into the grid.
• In the invoices issued by the providers sent to all consumers for electricity consumption, the value of green certificates is separately invoiced from tariffs for the production of energy.
• Romanian State helps investors in renewable energy with the system of REC (green certificates) that is based on the existing legal base on its commercialization.
• In Romania in the year of 2016 around 210 suppliers of energy bought a total of 12,6 mil. green certificates.
• In Romania, installed capacity of renewable energy is 4.741 MW from which biomass generation capacity is 106 MW.
• The European Union objectifies that the future all member countries should be concerned about the development of electricity production on alternatives to classical ones, i.e. based on renewable non-conventional resources.
• The mandatory quotas in Romania are: - 9% extra invoicing for green certificates and 6,2% invoicing for cogeneration.
• Target is around 15% presently to 24% in the year 2020 and 30% in the year of 2030 from total electricity generated by renewable resources. Romania has already surpassed the target that was forcasted for 2020 and is in surplus.
• Mandatory quotas system is a mechanism for the promotion of electricity from renewable sources based on acquisition by the suppliers of a mandatory quota of energy produced by these sources for the scope of selling to consumers:
  - ANRE decides a fix quota of electricity from renewable sources that suppliers must to buy;
  - ANRE yearly qualifies producers of electric energy from renewable sources in order to grant them with green certificates;
  - Producers of renewable energy receive for each MWh delivered in the network one (1) green certificate, which can be transacted on the market of green certificates;
  - To respect their obligations, the suppliers must have a number of green certificates that equals with the quota of electric energy from renewable sources (mandatory requirement);
  - Value of Green certificates represents a supplementary earning received by the producers for "clean energy" delivered to networks.
• Supplementary price received for Green certificates sold are established on a separately in a distinct market where the negotiated benefits brought to the environment are based on: bilateral contracts between producers and suppliers; on a centralized market that is organized and administrated by OPCOM.
• The Law 220/2008 stipulates a system for the promotion of energy from renewable sources for a period of 15 years. The duration of the sustainability for renewable energy is expected to be extended. Transport and network operators will issue monthly green certificates to the producers for the quantity of electricity produced from renewable sources of energy and delivery to the suppliers and / or final consumers.
• Electric energy is transacted on a market that is separate from the Green Certificates market. Authorities in charge with energy market: ANRE (Romanian Authority for control in energy), producers of electric energy from renewable sources, suppliers, OTS(transport and system operators), OPCOM (Romanian Operator and responsible for transactions of green certificates on the market of green certificates. This authority evaluates the prices of green certificates. This price is based on market price).
• Producers of energy from renewable sources will receive a number of green certificates for the energy produced and delivered. Number of green certificates received by the producers depends on the type of renewable source. For example: solar based renewable energy will receive 4 green certificates for each MWh. Market value for each green certificate is around 40 Euro (between min. / max. of 27-55 Euro).
• Price of electric energy is settled by the market. Energy produced by renewable sources sustained by the sponsored system with green certificates may be commercialized through legal contracts according to ANRE provisions. Selling price of the electric energy fabricated by renewable sources is around 38 Euro / MWh.
• Transport, network, distribution operators are obliged to guarantee transport and distribution of the electricity produced by the renewable sources.
• Renewable sources eligible to participate in the system of transaction of the Green Certificates are: hydro, wind, solar, geothermal, biomass, biogas, LFG, gas from fermentation of sludge from wastewater treatment plants.
• Mandatory annual Quotas for green certificates are around of 15% for the years of 2018-2020 and will be maintained at the similar quotas for the next years (2021-2030).