{"id":23457,"date":"2012-09-20T17:05:38","date_gmt":"2012-09-20T14:05:38","guid":{"rendered":"http:\/\/www.iliaspapageorgiadis.ro\/en\/?p=23457"},"modified":"2014-03-12T16:38:04","modified_gmt":"2014-03-12T14:38:04","slug":"bulgarians-boost-the-romanian-renewable-energy-market","status":"publish","type":"post","link":"http:\/\/www.iliaspapageorgiadis.ro\/english\/2012\/09\/20\/bulgarians-boost-the-romanian-renewable-energy-market\/","title":{"rendered":"Bulgarians boost the\u2026 Romanian Renewable Energy market"},"content":{"rendered":"

Back in 2008 – 2010, while the Romanian Renewable Energy market was put on hold, the Bulgarian one had exploded. Hundreds of investors tried to enter the market and tens of projects were constructed and commissioned. But it looks like the whole situation went out of control and the country’s budget could not sustain all these projects.<\/span><\/p>\n

This is why in June the Bulgarian State literally diminished the Feed in Tariffs, from 220 Euro \/ MW down to… 80! This froze the market completely, as there was no reason to build new projects with such a low income.<\/p>\n

Last week, Bulgaria decided to send away all remaining investors, introducing a new progressive taxation system for operating projects, from 1 to 39%! This is something which blows all business plans out of the water and will cause major problems to all the market players. (Rumors say that Greece is preparing to act in the same direction, as the market went out of control there as well).<\/p>\n

So after this, even the market for operating projects will suffer, sending the investors to… Romania!<\/p>\n

Is this something good for the Romanian market? Probably, but only time will tell. But some conclusions can be extracted:<\/p>\n

1.      This kind of surprises justify the term “country risk” that investors are using when they want to identify a country’s potential.<\/p>\n

2.      After a few years of use, the Feed in Tariff system seems to hide complications for the investors of many countries.<\/p>\n

3.      As always, Biomass projects are the least affected ones. You should not bypass this information.<\/p>\n

4.      Maybe the (much more complicated) scheme of green certificates that the European Commission suggested to Romania and the country introduced will prevent such problems from appearing.<\/p>\n

What is your opinion?<\/p>\n

The news:<\/em><\/p>\n

http:\/\/www.bpva.org\/en\/articles\/article1448.html?goback=%2Egde_1806337_member_165099954&______array<\/a><\/em><\/p>\n

On a closed meeting on Friday, September 14th 2012, the State Commission on Energy and Water Regulation adopted a Decision on Determination of Temporary Prices for Access of RES Producers to the Transmission and Distribution Grids.<\/em><\/p>\n

According to the document, the implementation of the prices is based on applications from the Electricity System Operator and the operators of the distribution grids (EVN, Energo Pro and CEZ). The prices adopted:<\/em><\/p>\n

– 1% of the FiT for biomass installations;<\/em><\/p>\n

– 5% of the FiT for hydro energy plants;<\/em><\/p>\n

– 10% of the FiT for wind power plants;<\/em><\/p>\n

– and 1-39% of the Fit for PV installations.<\/em><\/p>\n

>> The Decision enters into force form September 18th 2012, after which date the producers will have to pay the prices monthly. The document is published on the webpage of the Regulator (in BG)<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Back in 2008 – 2010, while the Romanian Renewable Energy market was put on hold, the Bulgarian one had exploded. Hundreds of investors tried to enter the market and tens of projects were constructed and commissioned. But it looks like the whole situation went out of control and the country’s budget could not sustain all […]<\/p>\n","protected":false},"author":3,"featured_media":59454,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[235],"tags":[],"_links":{"self":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts\/23457"}],"collection":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/comments?post=23457"}],"version-history":[{"count":0,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts\/23457\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/media\/59454"}],"wp:attachment":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/media?parent=23457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/categories?post=23457"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/tags?post=23457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}