Romania to launch power purchase agreement platform in autumn – ANRE

Irina Peltegova

27-Jun-2019

LONDON (ICIS)–Romania is on track to launch a trading platform for long term power purchase agreements (PPA) in autumn, energy regulator ANRE told ICIS.

This is likely to boost investment interest in the country’s stagnant renewable sector.

Romania subsidises existing renewable capacities through a green certificates system which allocates producers a number of green certificates for each megawatt-hour of renewable power generated, which electricity suppliers are then required to buy as part of a mandatory quota on a platform operated by exchange OPCOM.

However, the market has been suffering from a chronic oversupply for years which has deterred investors in recent years.

As of 2017, the country had 3GW wind and 1.4GW solar installed capacity.

While an alternative support scheme for existing producers is expected to be introduced from 2020-2021 , new investors have not seen much incentive to bring new projects online.

REGULATION GAPS

A gap in the current regulation does not allow power plant developers to become participants in the market until the project is commissioned, effectively blocking the signing of PPAs.

Separately, a law change from 2012 says that electricity trading should be done in a centralised manner on exchange OPCOM, effectively banning bilateral and broker deals.

Last autumn, ANRE put forward a proposal aimed at removing the barriers for PPAs.

“The regulation is 99% ready. I’m expecting to approve it this summer, and start transactions in autumn,” an ANRE representative told ICIS on Wednesday.

Exchange OPCOM also confirmed that it has been involved in the discussions and that it has already presented the technical capabilities of the future PPA platform to interested stakeholders.

The platform will enable investors to initiate PPA auctions ahead of them becoming licensed producers.

“The mechanism is foreseen as an opportunity for conclusion of bankable contracts needed for stimulating investments in new generation capacities,” an OPCOM spokesman said on Thursday.




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