Promoting Wind Energy in Romania

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Promoting Wind Energy in Romanias National
Renewable Energy Action Plan
Alexandru Sandulescu Director General Energy,
Oil and Gas Department Ministry of Economy,
Commerce and Business Environment
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Targets share of renewables

• Directive 2001/77/EC (amended by 2006/108/EC)
• 33 of gross electricity consumption in 2010
• Romanian energy strategy 2007 2020
• 33 of gross electricity consumption in 2010
• 35 of gross electricity consumption in 2015
• 38 of gross electricity consumption in 2020
• Directive 2009/28/EC
• 24 of gross energy consumption in 2020 (6.2
  from 2005)

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National potential of renewables
The national renewable energy sources potential
Source Annual potential To be used for
Solar 60 PJ/an 1,2 TWh Heat Electricity
Wind 23 TWh Electricity
Hydro of which under 10 MW 36 TWh 3,6 TWh Electricity
Biomass and biogas 318 PJ Heat Electricity
Geothermal 7 PJ Heat
NOTE these are theoretical potentials, real
usable potentials are much lower due to
technological, economical and environmental
limitations or restrictions.
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National potential of renewables
Distribution of the renewable energy sources
potential
I. Donau Delta (solar)II. Dobrogea (solar and
wind)III. Moldova (microhydro, wind and
biomass)IV. Carpati Moutain (IV1 Carpatii de
Est IV2 Carpatii de Sud IV3 Carpatii de
Vest ( biomass, microhydro)V. Transilvania
(microhydro)VI. Câmpia de Vest
(geothermal)VII. Subcarpatii(VII1 Subcarpatii
Getici VII2 Subcarpatii de Curbura VII3
Subcarpatii Moldovei biomass, microhydro)VIII.
Câmpia de Sud (biomass, geothermal and solar).
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National use of renewables

• Opertional
• hydro 6440 MW
• wind 14.9 MW
• biomass/biogas 8.1 MW
• solar 0.0088 MW
• Under construction
• hydro - 131 MW
• biomass/biogas 27 MW
• wind 1000 MW with ANRE authorizations
• - 2624 MW with grid connection
  contracts (112 wind farms)
• - 5000 MW with grid connection permits
  (30 May 2010)

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National Renewable Energy Action Plan
Final document published on the website
www.minind.ro More than 200 pages Large
collaboration between ministries Consultants
ICEMENERG (coordinator), ISPE, ICPE Public
consultation in June 2010
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National Renewable Energy Action Plan

• Deadline 30 June 2010
• Romanian NREAP ready, 208 pages
• Already submitted to EU (5.07.2010)
• Denmark
• Holland
• Great Britain
• Sweden
• Finland

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National Renewable Energy Action Plan
Where we are - electricity generation 2009
E-SRE generation of which 16.918 GWh 100
Hydro over 10 MW 16.144 95,4
Hydro between 1 and 10 MW 661 3,9
Hydro under 1 MW 102 0,6
Total hidro 16.907 99,9
Wind 11 GWh 0,1
January 2008 January 2009 January 2010
Wind energy
Producers 8 12 15
Installed power (MW) 7,754 10,92 14,155
Solar photovoltaic
Producers 0 0 1
Installed power (MW) 0 0 0,0088
Biomass
Producers 0 0 1
Installed power (MW) 0 0 8,080
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National Renewable Energy Action Plan
Where we are - electricity generation
perspectives Wind
investments under development
Network operator Connection contracts Connection contracts Connection permits Connection permits
Network operator Producers Installed power (MW) Producers Installed power (MW)
TRANSELECTRICA 3 600 18 2823
Enel Dobrogea 58 1538,56 19 522
FDEE Electrica Distributie Muntenia Nord 30 376,03 14 430,9
E.ON Moldova 7 16,69 8 300,6
Enel Banat 3 89 2 160
CEZ 1 1,8
TOTAL 102 2622,08 61 4236,5
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National Renewable Energy Action Plan
Development forecasts
GDP UM 2010 2015 2020
prognosis 2007 PRIMES mld. Euro 2005 104,9 141,1 185,1
prognosis 2007 Energy Strategy 2007-2020 mld. Euro 2005 108,3 142,2 186
prognosis 2010 CNP mld. Euro 2005 90,54 111,7 144
Final energy consumption
prognosis 2007 PRIMES 103 tep 28044 32019 35906
prognosis 2007 Energy Strategy 2007-2020 103 tep 27075 29862 31620
prognosis 2010 CNP 103 tep 23580 25885 27240
Primary energy consumption
prognosis 2007 PRIMES 103 tep 41890 46946 52991
prognosis 2007 Energy Strategy 2007-2020 103 tep 40071 45504 48360
prognosis 2010 CNP 103 tep 35610 38765 40500
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National Renewable Energy Action Plan
Development forecasts
Unit 2005 2010 2011 2012 2013 2014
GDP mld.Euro 2005 79,532 90,535 92,710 96,140 100,370 105,600
Annual GDP increase 0,5 2,4 3,7 4,4 5,2
Unit 2015 2016 2017 2018 2019 2020
GDP mld.Euro 2005 111,700 117,700 124,300 130,810 137,220 144,000
Annual GDP increase 6,0 5,7 5,3 4,9 4,8 5,0
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National Renewable Energy Action Plan
Development forecasts
 ktep 2005 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014
 ktep Reference year Reference scenario High efficiency scenario Reference scenario High efficiency scenario Reference scenario High efficiency scenario Reference scenario High efficiency scenario Reference scenario High efficiency scenario
Heating and cooling 18779 16056 15788 16106 16184 16643 16525 17303 16840 18093 17210
Electricity 4601 5350 5350 5710 5383 5864 5432 5994 5527 6066 5568
Transport 4139 4856 4725 5112 4873 5259 4999 5408 5125 5556 5252
Gross energy final consumption 27519 26261 25863 26928 26439 27766 26956 28705 27493 29716 28030
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National Renewable Energy Action Plan
Development forecasts
  ktep 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020
  ktep Reference scenario High efficiency scenario Reference scenario High efficiency scenario Reference scenario High efficiency scenario Reference scenario High efficiency scenario Reference scenario High efficiency scenario Reference scenario High efficiency scenario
Heating and cooling 18943 17572 19179 17708 19460 17818 19790 17973 20164 18140 20696 18316
Electricity 6189 5655 6445 5790 6741 5975 6980 6098 7211 6216 7439 6334
Transport 5707 5379 5814 5434 5921 5485 6027 5536 6134 5592 6239 5628
Gross energy final consumption 30838 28606 31438 28932 32122 29278 32797 29607 33508 29949 34374 30278
To be produced from renewable energy sources in
2020 30278 ktep x 24 7267 ktep
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National Renewable Energy Action Plan
Indicative trajectory
Diredtive 2009/28 annex I part B 2011-2012 2013-2014 2015-2016 2017-2018 2020
Diredtive 2009/28 annex I part B S 20 (S2020-S2005) S 30 (S2020-S2005) S 45 (S2020-S2005) S 65 (S2020-S2005) S2020
Trajectory () 19,0 19,7 20,6 21,8 24,0
Trajectory (ktep) 5132 5511 5957 6463 7267
2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Heating Cooling () 18,72 17,86 17,51 18,15 17,63 17,00 17,07 17,27 18,07 18,86 20,44 22,05
Electricity () 30,08 27,48 30,83 33,84 36,66 40,04 41,86 42,84 42,57 42,63 42,70 42,62
Transport () 1,39 5,82 6,37 6,90 7,32 7,72 8,11 8,43 8,80 9,23 9,69 10,00
Overall energy () 17,90 17,50 18,00 19,04 19,35 19,66 20,13 20,59 21,21 21,83 22,92 24,00
Deficit to be covered from stat. transfers 0 0 0 0 0 0 0 0 0 0 0 0
Surplus to be valorified as statistical transfers 0 0 0 0 0 0 0 0 0 0 0 0
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National Renewable Energy Action Plan
Indicative trajectory
ktep 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Heating Cooling 3516 2819 2834 3000 2969 2925 3000 3058 3220 3390 3707 4038
Electricity 1347 1435 1624 1802 1991 2195 2333 2448 2511 2566 2621 2666
Transport 58 275 310 345 375 405 436 458 483 511 542 564
Overall energy 4921 4529 4768 5147 5335 5525 5769 5964 6214 6467 6870 7267
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Legislation
Electricity law (13 / 2007) Renewables promotion
law (220 / 2008, revised in 2010) National
energy strategy for 2007 2020 (GD 1069 /
2007) Renewable energy promotion strategy (GD
1535 / 2003) Promotion mechanism by green
certificates (GD 443 / 2004.) Secondary
legislation issued by Energy Regulatory Authority
(ANRE) Operational procedures issued by Opcom
(market operator) and Transelectrica
(TSO)
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Incentives for investments

• Structural funds
• 2008 call
• 50 projects received
• 14 projects selected
• structural funds allocated approx. 70 mil. Euro
• 2010 call
• opened between January 2010 and April 2010
• structural funds approx. 100 mil. Euro
• revised Applicant Guide
• 419 proposals received, representing 20 x the
  available fund
• possible increasing of the funds with another 80
  mil. Euro.

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Green certificate market
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Green certificate market
Promotion of renewable energy sources - Green
certificates market

• Mandatory quotas (year / )
• Minimum and maximum price levels
• minimum value 27 Euro / MWh
• maximum value 55 Euro / MWh

Year Mandatory quota Law 220/2008 () Mandatory quota Revised Law 220/2008 ()
2008 5,26
2009 6,28
2010 8,30 8,3
2011 8,30 10,0
2012 8,30 12,0
2013 9,00 14,0
2014 10,00 15,0
2015 10,80 16,0
2016 12,00 17,0
2017 13,20 18,0
2018 14,40 19,0
2019 15,60 19,5
2020 16,80 20
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Green certificate market
Promotion of renewable energy sources - Green
certificates market

• Number of certificates per MWh
• hydro under 10 MW 3 certificates for new units
  / 2 certificates for refurbished units / 0.5
  certificates for other units
• wind 2 certificates till 2017, one starting
  with 2018
• biomass / biogas 3 certificates 1 for
  efficient cogeneration
• solar 6 certificates.
• Green certificates are issued for
• 15 years for new units
• 7 years for second hand units used in isolated
  systems
• 10 years for refurbished hydro units
• 3 years for old, un-refurbished hydro units

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Green certificate market
Promotion of renewable energy sources - Green
certificates market
Investments must be done before 2016 ! Penalties
for non compliance of suppliers 110 Euro per non
acquired certificate Revenues from penalties to
be used by Environment Fund ANRE must calculate
the GC Acquisition quotas ANRE can adjust quotas
if it is a high imbalance on the green
certificate market
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Green certificate market
Organized by Energy Market Operator - OPCOM
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Issues addressed in NREAP

• Enhancements of the day ahead market
• Adjustment market
• Intra-day markets
• Testing phase, operational in 2010
• Financial products market (futures, options) to
  be organized by Opcom - energy market operator

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Issues addressed in NREAP

• Network enforcement
• Network Development Plan 2008 2012 (and roughly
  for 2017)
• 1700 MW în 400kV Tariverde power station
• 600 MW în Vânt power station
• 354 MW în Moldova Falciu Berezeni, Rosiesti,
  Vetrisoaia, Smârdan-Gutinas
• 105 MW în Tulcea County Baia and
  Corugea-Cismeaua Noua
• 90 MW în Medgidia Sud area Pestera
• 120 MW în Medgidia Nord area Târgusor and
  Silistea.
• Total 3000 MW

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Issues addressed in NREAP

• Power system flexibility
• Romania has an inflexible power system
• 18 of generation on nuclear (to be increased
  to 35)
• 40 of generation on coal
• 15 of generation is the river hydro
• To increase the flexibility
• Pump storage power plants Tarnita-Lapusesti
  (1000 MW)
• New power plants on gas (Petrom 800 MW, Iernut,
  Fantanele)
• New interconnections with neighboring countries

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Thank you for your attention ! www.minind.ro san
dulescu_at_minind.ro