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Other investments in wind energy: EUR 135mln from Cyprus
A Cyprus-based company, EPGE, wants to invest EUR 135mln in a wind farm in Romania, Bloomberg informed. The European Bank for Reconstruction and Development (EBRD) could co-finance this project. EPGE plans to build a wind park with a capacity of 80MW in Dobrogea. The construction could begin in the first half next year and may take about one year. EBRD could offer a loan of EUR 93mln to EPGE for this project. Part of the money will be used to modernize over 40km of electricity transmission lines. The wind sector has potential to attract investments of over EUR 5bn by 2013 and will create over 6,000 new jobs, according to a communiqué of the Romanian Association for Wind Energy (RWEA). Moreover, the total installed capacity of the wind turbines could reach, in the next two years, 3,000MW. In this regard, RWEA hails the Government approval of the emergency ordinance that includes the amendments of Law 220/2008 on the support scheme in the renewable energy sector, in accordance with the decision of the European Commission. (October 31st 2011)

Hidroelectrica: the energy sale agreements to Alro and ArcelorMittal are not state aid
Hidroelectrica management says that none of the bilateral contracts for selling electricity, including to Alro and ArcelorMittal Galati, fall within the state aid category, because all these agreements have prices higher than the production cost. “The company’s management considers that these two contracts mentioned (with Alro and ArcelorMittal – Ed.) don’t fall within the category of state aid (indirect subsidies granted by the state for certain distributors) and added solid arguments to this opinion. According to Hidroelectrica, the contracts mentioned above or others in progress don’t represent state aid because in all cases the supply has been made at higher prices than the average production cost, ensuring the company’s profit”, a communiqué of the energy producer reads. The company makes these remarks in response to the statements made by the European Commission Vice President, Joaquin Almunia, who said on Friday, in Bucharest, that all Hidroelectrica’s energy sale contracts, including those with Alro and ArcelorMittal Galati, were analyzed by the Commission, because they had been concluded at tariffs below the market level. “I know that these are hard times, but indirect subsidies are not a solution to solve certain problems in various sectors. Through low electricity tariffs granted to certain players the cost to the beneficiary is reduced, but it’s dangerous for the competition. We analyze a possible aid received by ArcelorMittal and Alro, under which Hidroelectrica has granted low tariffs and we also analyze the contracts concluded by Hidroelectrica with retailers and other industrial consumers. Industrial consumers in other sectors are affected because they have to pay higher prices due to market distortion”, Almunia said, who is also Competition Commissioner, at the conference “Competition in key sectors of the Romanian economy”. Hidroelectrica said that the conclusion of such contracts did not result in the transfer of financial resources belonging to the Romanian state to suppliers, so they can not be seen as state aid. Hidroelectrica extended at the end of 2009 until 2018 half of the 18 bilateral contracts for the sale of electricity. Among the contracts extended is also that with the aluminum producer Alro Slatina, owned by Vimetco group, controlled by the Russian businessman Vitali Masitki. Alro is also the largest consumer of electricity in Romania. “Hidroelectrica management is concerned with the compliance of conditions imposed by the EU membership and with ensuring the conditions required to develop and consolidate the competitive market, so in 2011 initiated three rounds of negotiation with its partners on the competitive market, aiming to reduce the duration of the contracts, to reduce the quantities supplied, to increase the supply price and even to cease the contracts. Negotiations will continue until the end of the year, following that the results to be implemented as from the financial year 2012”, declared in the communiqué the general manager of Hidroelectrica, Constantin Trihenea. Hidroelectrica was forced, in September, to transmit to all companies to which it was selling energy that would reduce quantities because of lower level in reservoirs, because of this year’s drought. The state company renegotiates the supply price annually with its customers of bilateral agreements. At the same time, the communiqué reads that Hidroelectrica has responded to requests of the European Commissions related to ongoing energy supply contracts and has made available all the information necessary to assess the activity on the Romanian energy market. “In terms of supply contracts concluded with Alro Slatina and ArcelorMittal, we have transmitted, through the Ministry of Economy, clarifications required since April 2011 and the European Commission did not ask until now additional information. Moreover, the contract with ArcelorMittal was concluded on the energy exchange, in conditions of transparency and competition”, the communiqué of Hidroelectrica also reads. ArcelorMittal Galati steel mill, one of the largest consumers of electricity in Romania, bought at the end of December 2010, through the energy exchange OPCOM, electricity worth RON 227.7mln (EUR 53.2mln) from the only bidder, Hidroelectrica. At that time, Hidroelectrica chose to sell energy to ArcelorMittal even if it had received two other offers at higher prices. In 2009 ArcelorMittal Galati provided the energy demand for 2010 in a similar manner. The issue of bilateral contracts is highly debated at political and civil society level since 2006. Hidroelectrica has been accused of selling energy to several suppliers under confidential contracts, at prices lower than the market prices and which are renegotiated each year. The European Parliament passed in September a report on energy market transparency, which will force the wholesale energy traders to publish data of the agreements concluded and to register in a sole registry at EU level. (October 25th 2011)

Nuclearelectrica will be Satisfied with "Any Large Company" for the Investment in Reactors 3 and 4
Nuclearelectrica is willing to accept, in the project for the construction of units 3 and 4 at Cernavoda nuclear power plant, both specialized companies and electricity traders, or "in general, any large company" which meets the requirements, Mediafax reported. "Nulcearelectrica plans to sell some of the shares it holds to potential investors. The potential investors may be utility companies, large electricity consumers, wholesale or retail energy sellers, investment funds, financial and credit institutions - including banks and in general any large company that meets the requirements stipulated in selection procedure and which expresses its interest in this project", it is said in an announcement of Nuclearelectrica. The companies interested in participating in the project may submit the bids until December 15th. The investment will be made by the joint venture EnergoNuclear, now controlled in a proportion of 84.65% by Nuclearelectrica. The shareholding also includes Enel Holding with 9.15% and ArcelorMittal Galati, which owns a 6.2% stake. Enel and ArcelorMittal Galati could double their holdings in EnergoNuclear, up to 18.3%, respectively 12.4%, by the end of next year. Nuclearelectrica is seeking for partners in this project, evaluated at four billion euros, after the energy groups CEZ (from the Czech Republic), RWE (Germany), Iberdrola (Spain) and GDF SUEZ (France-Belgium), who signed the investment agreement in 2008, withdrew from the project earlier this year. The nuclear units 3 and 4 will have an installed capacity of 720 MW each and will double the production capacity pf the power plant in Cernavoda. The plant's two nuclear reactors provide about 20% of the country’s electricity needs. According to the previous statements made by Nuclearelectrica officials and the majority shareholder, the Ministry of Economy, several companies from Japan, China, Korea and USA have expressed their interest in this project. If it will manage to attract other partners in the project, Nuclearelectrica would remain with a 40% stake in EnergoNuclear. The Minister of Economy, Ion Ariton, said in February that if other foreign partners will not be found, the investment could be made with Romanian companies. The procedures to attract investors for the construction of units 3 and 4 began in 2006. According to the Government’s plans at that time, the construction of the two reactors was supposed to begin in 2009 and to be completed in 2014-2015. In 2009, the deadlines for the commencement and completion of the works were extended until 2011-2012, respectively 2016-2017, and this year the authorities announced that the project will be completed in 2019. (October 6th 2011)

Korea Nuclear Consortium has reaffirmed its intention to participate in the construction of reactors 3 and 4 in Cernavoda
Representatives of Korea Nuclear consortium reaffirmed their firm decision to participate in the project to build reactors 3 and 4 in Cernavoda during a meeting with the minister of Economy, Trade and Business Environment, Ion Ariton, held on Monday. “Officials of the consortium (Korea Nuclear – Ed.) have expressed again their firm decision to participate in the project by acquiring shares in the project company EnergoNuclear SA and through investments in the construction of reactors 3 and 4 Cernavoda. Minister Ion Ariton thanked the Korean guests for the promptness with which they responded to the invitation to return to Romania to continue talks and expressed his hope that the Korean side would become part of the Romanian project”, a communiqué of the Ministry of Economy, Trade and Business Environment (MECMA) reads. The meeting on Monday took place after initial discussions held by minister Ion Ariton with the consortium’s representatives in January 2011. The decision of the Korean side to participate in the Cernavoda project was communicated to the Romanian side at the end of August this year, in an letter of intent addressed to the minister of Economy, Trade and Business Environment. In the letter the company declared its firm intention to acquire shares in the company EnergoNuclear SA, which develops the project of Reactors 3 and 4 Cernavoda. The delegation that met on Monday with the Romanian Economy minister consisted of Chung Si Woo, President of BKB CO. Ltd., leader of the consortium, Won Woo Lee, President of Dong Gwang Heavy Tech, Seok Jin Ahn, director with Hyundai-Rotem, Taek Jin Jeong, director with Kepco-KPS and Han Keun An, general manager with Kepco-KPS. The companies GDF Suez, Iberdrola and RWE Power announced in January 2011, during the meeting of signatory companies of the Investors’ Agreement, aiming at the construction of reactors 3 and 4 of Cernavoda Nuclear Power Plant, the withdrawal from this project, from reasons that were related to the strategy of each company. Companies remained in the project, Nuclearelectrica, ArcelorMittal and Enel, have reaffirmed their decision to continue the project. (September 27th 2011)

State Sells Coal Mines and Power Plants
The new energy complexes Oltenia and Hunedoara, which will join the power plants on coal with mines which will provide coal as raw material, will be privatized by mid next year, according to the last letter of intent agreed by the IMF and the government, according to Mediafax. The Company in Oltenia will group the National Society of Lignite Oltenia and the current complexes Turceni, Rovinari and Craiova. Also, the company in Jiu Valley will include Deva and Paroseni, as well as four coal mines of the seven existing ones, the rest will be closed by 2018. The letter of intent, agreed at the end of the IMF evaluation mission in July-August and approved by the Executive in mid-September, states that new companies will be established by the end of this year, and privatization will be done either by IPO or by a strategic investor. The government is committed to select consultants for privatization by the end of March 2012. Moreover, the restructuring of the units in order to privatize them will require staff redundancies. At least 900 jobs will be abolished by the end of October, and another 200 will be removed from the organizational chart of Turceni complex. As for the National Coal Company, the viable assets will be taken over by the state through enforcement procedures triggered by the National Agency for Fiscal Administration (ANAF). (September 26th 2011)

ANRE: Romania’s heating system is a disaster
The situation of Romania’s heating system is disastrous because of the old age and inefficiency of existing plants. Each year are spent RON 4.5bn to produce electricity and heat in cogeneration, today declared Maria Manicuta, director with the Energy Regulatory Authority (ANRE). According to her, most plants in Romania are old and outdated and heat consumption at national level decreased by 90% since 1990 until now, but the plants and pipelines remained at the same size ever since. “It’s noticed a trend of reduction by 5-6% per year of thermal energy demand”, Manicuta said, during a seminar on the efficiency of plants in Romania. “The current situation is very sad. To see the extend of the disaster, total expenditure for electricity and heat production in cogeneration stands at RON 4.5bn per year and in the past five years were allocated over RON 7.8bn to subsidize the thermal energy”, ANRE representative added. Manicuta also said that energy producers in cogeneration (electricity and heat at the same time) were encouraged to invest in increasing the efficiency, so plants with a yield of over 70% are still receiving since April bonuses of RON 18.5/MWh, amount that appears separately on the bill paid by each consumer. Total budget of this support scheme is of RON 20bn for the period 2011-2023. From all this money will benefit plants of over 100 localities. (September 14th 2011)

Hidroelectrica, Investments of RON 4.6bn in the Last Three Years
Hidroelectrica made during January 1st 2009 and June 30th 2011 investments worth over RON 2.6bn. By the end of the year, investments of over RON 2bn will be completed, according to investments lists published by the Ministry of Economy. Among the largest investments made by Hidroelectrica in the last three years include those at CHE Movileni – RON 454mln, CHE Plopi an CHE Hidroagregatele 1 and 2 - RON 390mln, CHE Lotru Ciunget – RON 382mln and CHE Ipotesti – RON 340mln. By the end of the year, investment will be completed at AHE of Olt River defile, on the Cornetu - Avrig sector (RON 1.5bn), but also works to increase the reliability and modernization of CHE on Olt River on the sector Slatina - Danube (RON 400mln), plus two smaller works: the Frunzaru filling - to improve safety in mining (RON 45mln) and the Galbeni filling to achieve the sealing and the consolidation of the dam on the right bank over the area km 0 – km 3 – intervention works (RON 90mln). (September 2nd 2011)

Amonil Slobozia (AMO) to produce electricity
The General Assembly of shareholders of chemical plant Amonil Slobozia will decide, at the end of this month, to change the plant’s main line of work from the production of fertilizer to the production of electricity, a communiqué remitted to the Stock Market shows. The move will put an end to 41 years of uninterrupted production of fertilizer urea, Amonil being the country’s largest producer of this type of fertilizer. According to the communiqué, the production of fertilizers and nitrogen products will be given a secondary importance. Contacted by, plant director Gheorghe Anastasoai stated that “Amonil no longer produces fertilizers for some time now; Chemgas produces them. The power plant is under construction.” The Slobozia-based plant’s decline started two years ago when Chamgaz took over a RON 53 M debt from Distrigaz Sud. Chemgas was established in 2009 and its shareholder is an offshore company based in Belize. (September 1st 2011)

The Amount of Green Energy Triples in 2011
The green energy production estimated for 2011 is of 2.2TWh, according to a note signed by the President of the National Energy Regulatory Authority (ANRE), Iulius Dan Plaveti. Thus, the amount of power generated from water, wind and biomass of up to 10MW will increase this year by over 3.3 times compared to 2010, when they produced 0.67TWh. This jump is mainly due to wind farms which were put into force in mid 2010, like the one controlled by CEZ, as well as those which supply electricity as of 2011, namely the wind farms owned by Enel, EDP, Romconstruct Top. Green energy has made its way this year into the monthly statistics made by ANRE for the production category. For the latest version, the one for June 2011, the company Tomis Team, which operates the park from Fantanele, owned by CEZ, has a market share of 1.2%. The Portuguese company EDP, with the farm at Cernavoda, is credited with 0.3% and the Italian company Enel Green Power, with parks in Salbatica I and Agighiol has 0.1%. (August 30th 2011)

How Did Romania Lose Three Billion Euros from Fresh Air
Romania will not be able to sell the surplus of emission certificates, according to yesterday's decision of the Compliance Committee of the Kyoto Protocol. The surplus of certificates that Romania currently has were worth EUR 3bn in 2009, and now we would have only got EUR 1.5bn for them. The Compliance Committee of the Kyoto Protocol formally decided yesterday that our country would not be able to capitalize the excess carbon dioxide emissions because the monitoring and reporting system of the emissions does not meet the requirements of the Committee. Romania has a surplus of 300 million certificates, because it has polluted less than predicted at the time of the signing of the Kyoto Protocol in 1997. This is because many large industrial enterprises were closed during this time. Romanian authorities could have sold the surplus in 2009 or in 2010, receiving EUR 3bn, the amount at which these transactions were made then. But the Ministry of Economy and the Ministry of Environment haven’t agreed which one of them to manage this process. According to the European legislation, this must be done by the government of a country and, eventually, to opt for an inter-ministerial committee.(August 29th 2011)

Green Light for Wind Projects: the European Commission's Opinion was Published in the Official Journal
The decision under which the European Commission has approved the scheme to support renewable energy production in Romania, by granting green certificates, was published Tuesday in the Official Journal of the European Union. According to the decision of the General Directorate for Competition within the EC, the total budget of the support- scheme stands at RON 80.7 billion, respectively EUR 19.5 billion, which means the value of the green certificates for the entire duration of the application of the support scheme. This means a maximum of 15 years for the new wind turbines, for the new micro hydro power plants, for solar electricity for all types of biomass. Second hand wind technologies receive certificates for seven years. The upgraded micro hydro power plants will be supported for 10 years, and those that weren’t upgraded – for three years. The investors who wish to benefit from the support scheme should begin production no later than December 31st 2016. In the first 10 years when the scheme is applied, the producers will receive certificates worth about EUR 10 billion. (August 26th 2011)

Metrorex Buys Again Energy without Auction
Metrorex will resume in late August the auction for buying electricity for a period of one year. The selection of suppliers should have been made in July, but, due to a lack of competitors, the contract was awarded to Petprod that will deliver electricity until November. "We organized a negotiation without publishing in advance a participation announcement in which we invited 15 companies, of which only four came to the auction. The company we currently work with, respectively Petprod, which offered a price of RON 303 per MWh, had the best price", the general manager of Metrorex, Gheorghe Udriste, said, quoted by Mediafax. The initial contract with contract expired in May. A newspaper recently wrote that Petprod continued to deliver energy to Metrorex, under a contract valid until August, worth RON 11.6 million, VAT excluded, also signed through direct negotiation. Metrorex officials told us at that time that this is perfectly legal. "To ensure the continuity of the subway electricity supply, a negotiation without a prior publication of a participation announcement was organized, to which several business operators were invited", they explained. Petprod has a 2% share of the energy supply competitive market.(August 22nd 2011)

China Nuclear PowerEngineering, interested to join the project of reactors 3 and 4 in Cernavoda
China Nuclear PowerEngineering (CNPEC) is interested to invest in reactors 3 and 4 in Cernavoda, declared Economy minister, Ion Ariton, adding that by October the confidentiality agreement with the Chinese company could be signed. “(…) the Chinese company expressed its interest for our Cernavoda project. In this regard, we agreed that in the following period the technical discussions to continue, so by October to sign the confidentiality agreement, which will allow further negotiations and the entry into the project of the company China Nuclear Power Engineering, together with the other partners, ArcelorMittal, Enel and Nuclearelectrica”, Ariton declared. The Economy minister met in Shenzen, during the working visit in China, with the management of group Guangdong Nuclear Power, which includes CNPEC. (August 16th 2011)

Hidroelectrica Has Put Up for Sale 16 Micro Hydro Power Plants
The state-owned company Hidroelectrica, the largest electricity producer in Romania, resumes the sale of the micro hydro power plants under its administration and puts out for privatization 16 of them, according to the data transmitted by the company, at the request of NewsIn. "The sale of the 16 micro hydro power plants will be made after the following steps: their evaluation by an authorized representative in order to obtain the sale price and after obtaining the necessary approvals from the Ministry of Economy, Trade and Business Environment, as a majority shareholder", shows the data transmitted by Hidroelectrica at the request of NewsIn agency. The company Hidroelectrica SA also has a total number of about 160 micro hydro power plants under its management. Hidroelectrica posted in the first six months a gross profit of RON 51,959,658, almost four times lower than the profit recorded in the same period last year, of RON 197,549,417. (August 12th 2011)

Electrica SA posted in H1 a net profit down 11%, to RON 115.61mln
State-owned electricity supplier and distributor Electrica SA achieved in H1 2011 a net profit of RON 115.61mln, 11% lower than in the first half of 2010, of RON 131.03mln, according to data provided to NewsIn. “The profit achieved in the first half of 2011 is below that obtained in the same period of the previous year, because the supply branches established on June 30th 2011 provisions for uncollected receivables from CN Cai Ferate CFR”, data submitted by Electrica show. Also, the state-run company recorded in the first six months of 2011 a turnover of RON 2.671bn, almost 15% higher than the business registered in H1 2010, of RON 2.312bn. (August 11th 2011)

CFR debts to energy suppliers to be paid by the end of the year
The debts of railway companies to electricity suppliers, worth circa RON 2bn, will be paid by yearend, according the minister of Transport, Anca Boagiu. Railway companies owe electricity suppliers RON 1.983bn, of which 831mln are only penalties. “Of the four companies to which CFR is indebted, two are more vocal. But, in conditions in which one MWh cost RON 146 and the acquisition price paid by railway companies is RON 476, I highly recommend electricity companies to make the investments assumed in the privatization plans and to be aware that Romania is not no man’s land”, said Minister Anca Boagiu. According to her, after the full payment of debts, CFR will be free to buy energy in the market. “The wise energy guys should not imagine that we will keep companies captive for them to make profit”, the minister added. Anca Boagiu stated that, at that time, they were in negotiations with the electricity suppliers because it wasn’t normal that penalties to be half of the total amount owed. (August 9th 2011)

The profit of CEN Craiova rose more than 14-fold
Craiova Energy Complex (CEN Craiova) achieved in H1 2011 a net profit over 14 times higher than that of the similar period last year. Constantin Balasoiu, general manager of the complex, said that, according to preliminary results, in the first six months of this year the net profit achieved stood at RON 11.85mln. In January – June 2010 interval, the profit posted by CEN Craiova amounted to RON 807,982. This accelerated increase took place in conditions in which the expected net profit for the entire year amounts to RON 2.36mln. In other words, the profit expected by CEN Craiova for the entire year was exceeded by five times only in the first six months of 2011. According to this year’s budget, the complex plans investments of RON 295.7mln, from own sources (RON 105.7mln) and local bank loans (RON 190mln). Currently, CEN Craiova is implementing a program of cost cut for 2011-2012, which also includes layoffs, Mr. Balasoiu also declared. This year 250 persons were made redundant (in March). Action plan for making the company profitable for 2011-2014 aims at cost reduction by at least 22%, ensuring revenues necessary by including in the price the cost of CO2 certificates, achieving the environmental investments priority for compliance with the conditions imposed by environmental protection, decreasing arrears, developing the company by achieving new production capacities by attracting strategic investors in this regard, as well as absorbing EU funds for the three major projects approved within POS CCE, worth EUR 70mln. The monthly average revenue of an employee with CEN Craiova amounts, according to this year’s budget, to RON 3,610. (August 5th 2011)

Romania produces 0.5% of EU’s wind energy. In 2020 it will reach 1.2%
Last year, the energy production from green sources accounted for 1.7% of the total electricity generated in Romania, i.e. 1TWh. In the first five months of 2011, the wind energy meant only 2% of the final consumption and by the end of December the target has been set at 10%. The local electricity production from wind sources will grow by seven to eight times by 2020, and Romania will contribute with 1.2% of the wind-generated power, compared with 0.55% currently, according to a study of the European Wind Energy Association (EWEA). Our country will have the same installed power as Bulgaria, of 3,000-3,500MW in wind, and will produce between 7 and 8.2TWh. In a production top, Romania will hold the 14th position out of 27, before states such as the Czech Republic, Finland, Hungary, Slovenia, but also Poland, Austria, Greece or the Western countries. By 2020 the domestic production from renewable sources must account for 20% of the total gross electricity consumption, existing annual individualized shares, according to a European directive. For this year the target is set at 10%, but in the first five months only 2% was achieved. Currently are installed 575MW and by the end of 2011 it’s estimated a maximum of 1,000MW. The biggest farm is that owned by the Czechs from CEZ, in Fantanele, Dobrogea, of 337MW. (August 4th 2011)

Enel Could Receive a Credit of EUR 200mln from EIB to Build Wind Farms in Romania
Enel Green Power, a division of the Italian utility group Enel, could receive a grant of EUR 200mln from the European Investment Bank (EIB) to build three wind farms in Romania, Bloomberg reports. “The European Investment Bank confirms that it currently evaluates the possibility of granting a loan of EUR 200mln to Enel Green Power Romania", Richard Willis, EIB spokesperson, said. According to the bank, the credit represents 50% of total costs of the project. EIB has refused to make any comments on the maturity and interest rate of the loan because the agreement has not been completed yet. The European Commission has recently approved Romania’s program to support the development of renewable energy, according to which producers of electricity from renewable sources would receive green certificates worth up to EUR 56.10/MWh generated. The three wind farms that Enel Green Power is building in Romania will be located in Dobrogea and in Banat with a total installed capacity of 258MW. The parks will feature 126 wind turbines with capacities ranging between 2.0MW and 2.3MW. According to the data from the European Wind Energy Association (EWEA), Romania now has an installed wind capacity of 462MW. In addition, based on the installed capacity last year, Romania ranks seventh in Europe and Spain is the leader. Enel Group is present in Romania since 2005 and, now, it is the largest private investor in the electricity sector, with about 2.6 million customers, giving a network of 93,00o km and approximately 5,000 employees.(August 3rd 2011)

Romanian-Bulgarian Memorandum for Two Hydro Power Plants on the Danube
Bulgaria and Romania are considering for some time to build joint hydro power plants on the Danube, as well as several bridges, except for the bridge at Giurgiu-Ruse and that from Calafat-Vidin which is still under construction. The Governments of Romania and Bulgaria will sign a Memorandum in September 2011 for the preparation of two joint projects of hydro power plants on the Danube – in Turnu Magurele / Nikopole and Calarasi / Silistra, the Bulgarian Ministry of Economy said Monday, cited by Sofia News Agency. The Bulgarian Minister of Economy, Traicio Traikov, met Monday in Bucharest with his Romanian counterpart, Ion Ariton. They discussed the two hydro power projects, whose future development could bring great economic potential, Sofia News Agency wrote. According to the Bulgarian Ministry of Economy, the two hydro power facilities will produce over 3,800 GW / h of electricity per year, which is likely to improve transportation connections and bilateral trade. Bulgaria and Romania are considering the possibility to build several joint hydro power plants on the Danube, and several bridges also, except for the bridge at Giurgiu-Ruse and Calafat-Vidin which is still under construction. (July 20th 2011)

Who and How Much Help did Green Energy Producers Receive
All green certificates available for last year were sold on the market at the maximum price of EUR 55. The champion of the previous years, Hidroelectrica, lost the first position among the companies that made money from green certificates in favor of a wind energy producer. Five companies producing energy from renewable sources have received the bulk of the amount of green certificates available on the market last year. More than one third went to the wind energy producer Tomis Team, while Hidroelectrica, the champion of the previous five years, has received only 10% of the certificates. Other beneficiaries were Elsid with 15%, Bio Electrica Transilvania with 8% and Holzindustrie Schweighofer with 6%, according to the data of the Romanian Energy Regulatory Authority. The price for promoting renewable energy production was of about EUR 37 million taking into account the price at which they were traded, of EUR 55 throughout the year. Thus, Tomis Team has received about EUR 13 million just from green certificates, and Hidroelectrica only 3.7 million. The green certificates issued in 2010 for the producers of electricity from renewable energy sources were entirely offered and sold on the centralized market and on the bilateral contracts market. The buyers were the large electricity suppliers E.ON, Enel, CEZ and Electrica. The degree of fulfillment of the mandatory annual rate of acquisition of green certificates in the year 2010 stood at 99.9%. The state’s support for "green" energy producers has led to a rise of electricity prices to final consumers of RON 3.55 per MWh, according to ANRE. The green energy promotion system was applied in 2010 for a production of 676,606 MWh of electricity, for which as many green certificates were issued, of which 40.3% are represented by hydro power, 43.2% the electricity produced by using wind power, 16.6% electricity from biomass and 0.001% is represented by photovoltaic energy. The capacity installed in the renewable energy units mentioned was of 561.244 MW (12.8% in hydro units, 88% in wind farms, 4.8% in biomass units and 0.002% in solar units). The green certificate represents a system for rewarding renewable energy producers for each MWh of electricity supplied to the system. The transportation and system operator issues green certificates monthly for the producers of electricity from renewable energy produced and delivered in the network. Electricity suppliers are obliged to purchase an annual number of green certificates equal to the result of the multiplication between the mandatory share value and the amount of electricity supplied to final consumers. The producers of electricity from renewable energy sources can sell the green certificates received on the bilateral contracts market or on the centralized market of green certificates. (July 19th 2011)

Reducing Subsidies for Green Energy Doesn’t Scare Investors
Romania’s plan to reduce generous subsidies for renewable energy projects will not deter investors in wind energy, despite uncertainty over funding, because Romania has huge wind potential, an analysis conducted by Reuters says. The scheme to promote green energy awaits the approval of the European Commission that believes that subsidies may be too generous. The changes proposed include the possibility of reducing support if the project becomes too profitable. Analysts believe that the perspective of high profits remains, unlike Bulgaria, where the government drastically cut subsidies for green energy, because they would have grown the final price too much.
Wind Potential Blows Subsidies
"There will be cases of projects abandoned in Bulgaria, but the interest in developing wind energy projects in Romania remains", Joanna Kozak, an analyst at brokerage company Greenmax Capital Advisors, says. Other changes proposed by Romania include reducing the number of green certificates for technologies such as biomass, and the access to the network will be guaranteed, not prioritized. Investors receive certificates that they later sell at a price between EUR 27 and EUR 55 each, in addition to the energy prices. "I'm not sure how long will Romania have the financial capacity to maintain these facilities", Alexandar Kovacevic, an analyst at Oxford Institute for Energy Studies, said. This is because the higher the subsidy, the higher the final price will be. According to Alexandar Kovacevic, Romania is attractive without these incentives, as it has a huge wind potential. (July 11th 2011)

Primary Energy Resources Increased by 5.8% in the First Five Months
Primary energy resources increased by 5.8% in first five months of this year compared to the same period of 2010 and the electricity resources rose by 10.1%, according to the data transmitted Wednesday by the National Institute of Statistics (INS). The main primary energy resources in the first five months amounted to 14,699.2 thousand tons of oil equivalent (toe), with 808.7 thousand toe higher than in the same period of 2010. Domestic production amounted to 9,790.6 thousand toe, up by 5.5% compared to the same period last year, while imports stood at 4,908.6 thousand toe, up by 6.5%. In January-May 2011, electricity resources were of 27,195.6 million kWh, recording an increase of 2,497.1 million kWh (+10.1%) compared to the same period of 2010. The increase of the electricity resource was mainly owed to a higher production, with 2,692.4 million kWh (+11.1%). The production of thermal power plants stood at 14162.8 million kWh, an increase of 2,329.4 million kWh (+19.7%). The production of hydro power plants was 8,143.5 million kWh, namely an increase of 239.1 million kWh (+3.0%) and the production of nuclear power plants stood at 4,666.2 million kWh, up by 123.9 million kWh (+2.7%). According to the National Institute of Statistics (INS), the final electricity consumption was of 22,213.9 million kWh in the first five months, 5.1% higher than in the corresponding period last year. Public lighting recorded a decrease of 12.4% and household consumption grew by 2.3%. The electricity export stood at 1,775.8 million kWh, respectively an increase of 1,314.8 million kWh, respectively 285.2%. Own technological consumption in networks and stations stood at 3,205.9 million kWh, up by 104.8 million kWh, respectively by 3.4%. (July 6th 2011)

The Investors in Green Energy Are Waiting Breathless the Verdict on Green Energy from the European Commission
The investors in renewable energy could receive this summer news that they have been waiting for almost three years, respectively the opinion of the European Commission on Law 220/2008 which establishes the system of support for green energy. Foreign companies that have started or want to start projects in this field or bodies such as the Foreign Investors Council have said repeatedly that Romania risks losing substantial investments if this law will not be applied, although this comes at the cost of electricity bills higher by about 70% in the long term. The most important thing that this law sets is the number of green certificates that each producer of green energy will receive, regardless of the source of energy used. These certificates, which are granted by Transelectrica for each MWh of renewable energy produced, basically represent a form of subsidizing some investments that would otherwise not be profitable. These certificates are purchased by energy suppliers required to have certain mandatory levels of green electricity in the basket supplied to consumers. Furthermore, the costs for purchasing these certificates are transmitted in the bills paid by the population and companies. (June 8th 2011)

The State Cuts More out of Green Energy Investors' Profits
At the pressure exerted by the European Commission, the authorities will have to keep an eye on the earnings of the investors in renewable energy, which, by 2020, will receive subsidies of about EUR 10 billion. Easily approved by Parliament, the subsidies which Romania wants to give to green energy are considered in some cases too generous by the European Commission (EC). Officials in Brussels have started to thoroughly analyze the support scheme, established by Law 220/2008, the main concern being that Romanian authorities provide excessive profits for investors. Thus, this law also awaits the opinion of the EC to be enforced. Biomass receives less money. After consultations with officials in Brussels, the authorities have changed now, through a draft Emergency Ordinance, Law 220. The new provisions have cut some of the subsidies for certain technologies, and the authorities will need to make sure that the investors will not gain too much. "We talked from the beginning with EC officials about overcompensation. Where they considered that it was the case, we have proposed the reduction of the number of green certificates. For the final consumer, we bring an additional guarantee that the investors will not receive undue revenues", Dan Plaveti, head of the Romanian Energy Regulatory Authority (ANRE), declared. (June 7th 2011)

The Wind Energy Sector Expands
Wind power has had, in March, a 2.2% share of the total electricity production in Romania, according to a report prepared by the Romanian Energy Regulatory Authority (ANRE). Thus, out of the total energy output, which amounted to 5.65 TWh, the electricity produced from wind had a contribution of 0.12430 TWh (124,300 MWh). Since the beginning of the year, the amount of energy produced in wind farms has increased. In January - which is also the first month when the wind energy is included in ANRE’s reports on energy production sources -, electricity from wind has had a 0.8% share of the total national production, meaning 47,920 MWh. A month later, in February, the share of electricity from wind has doubled compared to January, reaching 1.9% of the total production, respectively 103,360 MWh. The leading wind energy producers in Romania are the Czechs from CEZ, which in March had a market share of 1.27% of the total electricity production, with the wind farm in Fantanele (Constanta County). The Portuguese from EDP Renewables are next, with a share of 0.22% in the wind farm from Pestera (Constanta County also) and 0.05% in the Cernavoda project. Enel Green Power, with a share of 0.05% in March, has recently entered in ANRE’s statistics. (June 6th 2011)

Renewable Energy Will Have Priority Access to the Network Provided It Is Sold at Regulated Prices
The Romanian Energy Regulatory Authority (ANRE) proposes to remove the priority access to the transport and distribution networks of renewable energy producers, except for those that sell electricity at regulated prices. "For electricity from renewable sources that is sold at a regulated price, the transport operator and system operator and/or distribution operators provide priority access to the networks", a draft Emergency Ordinance (GEO) to amend the law 220/2008 reads. The provision belongs to ANRE, which wants to amend Law 220 on promoting the production of renewable energy this way. Regulated energy tariffs are set by ANRE. The population and a number of public institutions and companies are supplied with electricity under regulated regime. Law 220 of 2008 includes measures to promote the production of renewable energy and, even if it was enacted three years ago, it is still not applicable, because it wasn’t endorsed by the European Commission. "Producers of energy from renewable sources are connected to the electricity transport or distribution network to the extent that the safety of the national energy system is not compromised", the proposal to amend the Act 220 says. Currently, all renewable energy producers have priority access to the transport or distribution network of electricity, to the extent that the safety of the national system is not compromised. Also, the transport system operator, the state company Transelectrica (TEL), has the right to limit or discontinue the production of energy from renewable sources only based on trade rules established by ANRE, or in exceptional cases, to maintain stability and achieve the safety criteria of the national energy system. The Emergency Ordinance amending these laws will be debated by the Government next week. (May 30th 2011)

Enel Romania Will Invest Around EUR 280mln in the Electricity Grid in 2011
The General Director of Enel Romania, Luca D'Agnese said on Friday in a meeting with the press, that the energy group would invest around EUR 280mln this year in the electricity distribution network, similar amount to the one allocated last year. "Most of the investments, over 95%, will go into the distribution network (cables, transformers, etc), and the rest to our cashiers. Among the subsidiaries, over 53% but less than 60% of the investment budget will go to Electrica Muntenia Sud. Last year, the budget for investments amounted to EUR 280mln and it was divided as follows: 50% in Electrica Muntenia Sud and the other half to the other branches", Luca D'Agnese said. Also, Enel Romania representative said that the company's strategy is based on the development of new projects. "The three main projects we are involved in Romania – reactors 3 and 4 at Cernavoda, the power plant Braila (800 MW) and thermal plant Galati – are enough. They exceed a total of EUR 5bn and they will have 3000 MW installed. We don’t consider any more projects (...) we’re not interested in buying minority stakes in various companies, either", the Head of Enel Romania said. Enel Company has invested over EUR 1.8bn in Romania, since it has entered the local market in 2005. (May 23rd 2011)

The Ministry of Economy Will Build Tarnita Hydro Power Plant, Estimated at Over EUR 1 Billion, Until 2019
The Ministry of Economy, Trade and Business Environment (MECMA) plans to build until 2019, in partnership with private investors, Tarnita-Lapustesti hydro power plant, in Cluj County. The contract for the execution of the works for Tarnita could be signed in the second half of 2012, and the partial commissioning of the hydro power plant will be made in the second half of 2017. In 2019 the unit is expected to operate at full capacity, respectively at 1,000 MW, in each case it will produce 1.65 TWh of electricity per year, according to the estimates of the Ministry of Economy. Tarnita project, valued at EUR 1.028 billion, will be achieved by a joint venture in which the state-owned energy producer Hidroelectrica will hold 51% of the capital. Authorities expect binding bids from the investors interested in the project in the period September-October 2011. Valeriu Binig, director of financial advisory services at Deloitte Consulting company, said that the government decision for the approval of Tarnita investment could be released into public debate within ten days. According to him, the investment would be funded in a proportion of 60% from loans, and 40% from the contribution of the shareholders. Ten companies interested to participate in the project were already remarked, most from the European Union. (May 20th 2011)

Transelectrica Bucharest (TEL) Opened the Power Station in Tariverde, the Investment of EUR 26.5mln Belongs to CEZ
The national electricity transporter Transelectrica inaugurated the 400 kV power station in Tariverde in Constanta County, and the investment of the project of EUR 26.5mln was funded by the Czech group CEZ and the income from connection fees. The duration of the project was of two years, according to a statement issued on Wednesday by Transelectrica. The CEZ group builds a 600 MW wind farm in the area, which will be the largest onshore wind farm in Europe. "The project was conducted at the highest technical and construction standards by the consortium Alstom - Emon Electric and it is the first important station of the energy transport network to evacuate renewable electricity from wind power centers. The station in Tariverde will ensure the connection to the National Energy System for over 2,000 MW of installed capacity", the Director General of Transelectrica, Horia Hahaianu, said. Transelectrica is the operator of the energy transport system that manages, operates, maintains, modernizes and develops the transport network that includes 78 electric transformer stations with a capacity of about 35,000 MVA and 9,028 km of overhead power lines of 110/220 kV, 400 kV and 750 kV, that are managed by eight branches (in Bucharest, Bacau, Constanta, Cluj, Craiova, Pitesti, Sibiu, Timisoara). (May 19th 2011)

An American Group Invests EUR 350 Million in Two Wind Farms in Tulcea
The American company Concorde Developments announced the construction of two wind farms, for which it received subsidies from the Romanian Government and the European Commission, according to PR Newswire. Concorde Developments has received permits to build a wind farm of 45 MW in Tulcea. The project, entirely owned by the American company, is worth EUR 90 million. The American group will use wind turbines produced in Canada and says that it has already signed contracts to sell the electricity produced here. In addition, Concorde is now in negotiations with a Greek group to buy a wind project which has all the permits necessary from the Romanian authorities, a project located in the same area. Its value stands at EUR 260 million and has a capacity of 120 MW. The American company says that there is already a contract to supply energy, which will be taken by Enel. The president of Groupe Concorde Development, Alex Taranu, said that these contracts are the result of "three years of investments and negotiations”. Groupe Concorde Developments has operations in Europe since 2005, and in the United States since 2007. (May 18th 2011)

Hungary’s MVM wants to expand its operations in Romania
The company Magyar Villamos Muvek (MVM), with activities in electricity production, transmission and supply, wants to expand its operations in several EU states, including in Romania, according to the general manager of the Hungarian company, Baji Csaba. According to Csaba, MVM started preparations to carry out activities in Austria, Germany, the Czech Republic, Slovakia, Romania, Croatia, Sserbia, Slovenia, France and Poland. Other objectives of the company for this year are to increase efficiency and to lower costs. The Hungarian company has shown interest to participate in two energy projects in Romania, i.e. the construction of Tarnita-Lapustesti hydropower station, and AGRI project, for the LNG transmission from Azerbaijan to the port of Constanta. (May 12th 2011)

Energy Trade: Sudden Drop of CE Craiova and Top Entry of Petrom
Craiova Energy Complex lost in September 2010 the biggest client it had, Petrom Oil Company, and fell on the third place in the top suppliers of electricity on the competitive market. In the latest report compiled by the Romanian Energy Regulatory Authority (ANRE), in January, CE Craiova has a market share of 3%, compared to 8% recorded in the report published in December 2010. 'I do not know what data ANRE has, but I can’t explain that decline. It is true that we’ve lost the contract with Petrom, in September, but we gained other clients", Constantin Balasoiu, the director of CE Craiova declared for The share lost by the energy complex appears for Petrom, the oil company is for the first time in the top of suppliers. The ANRE report credits the oil company with a 5% share and ranks it on sixth place. Electricity is purchased on the opened market and it is used for internal use of the company, Petrom representatives say. The company will secure its electricity need once the 860MW power plant in Brazi will be commissioned this year. The excess of electricity will be sold on the market. (May 10th 2011)

A Chinese Company Has Signed an Agreement to Participate in a 700 Million Euros Project in Doicesti
The Ministry of Economy wants to attract private investors who, in partnership with Termoelectrica, would build two energy production groups at the plant in Doicesti, valued at EUR 700 million, and Termoelectrica has signed an agreement to that effect with a Chinese company. The head of the privatization and cooperation service of Termoelectrica, Stefan Arama, said in a press conference organized by the Ministry of Economy that Termoelectrica has signed on April 14th a memorandum of cooperation with the Chinese company China Huadian Engineering, which established the investment structure and participation plan in the project. "The Chinese company is the interface with the investor, the Chinese state. The discussion was also attended by Eximbank China, which analyzes the project. We believe that the Chinese company will invest in Doicesti", Arama added. Arama said that the Chinese company could take a number of coal mines in Muntenia Basin, by which it will provide the raw material necessary for energy production in Doicesti. "The secret of the project is the supply with coal from the area. If it will take some coal mines in Muntenia Basin, it will provide the coal for Doicesti. From what I understand from the discussions with them, they want to invest", Arama said. Two new groups with a total installed capacity of 500 MW would be built through a joint venture at Doicesti plant, owned by Termoelectrica. (May 6th 2011)

A New Wind Farm of 70 MW Will Be Built in Corugea, Tulcea County
Enel Green Power Company (EGP), within the Italian group Enel, has began construction work on a wind farm with an installed capacity of 70 MW, located in Corugea, in Tulcea County, which will generate 189mln kWh/year, the company announced on Tuesday. "Located in Tulcea County, the wind farm includes 35 V-90 wind turbines (2 MW each). When completed, the park will generate 189 million kWh each year, enough to cover the annual electricity needs of 70,000 households, avoiding the emission of 106,000 tons of CO2 into the atmosphere", the company’s press release reads. Enel Green Power has two other parks in Romania, Salbatica I and Agighiol, with an installed capacity of 64 MW. EGP is building Salbatica II, which will have a total installed capacity of 70 MW and it extends the capacity of Salbatica I with 40 MW. When completed, these parks will increase about four times the installed capacity in Romania of Enel Green Power for wind energy. (May 4th 2011)

Amendments to the Law of Renewable Energies
Authorities have issued a proposal to amend Law 220 on stimulating investments in renewable energy. The amendment will be adopted through Government Emergency Ordinance. Under the draft law posted on the website of the Romanian Energy Regulatory Authority (ANRE), if overcompensation will be found (obtaining rates of return exceeding 12% for each investment from investors), measures will be taken to reduce the number of green certificates granted. A possible mechanism for dealing with the possible cumulation of aid and through the proportional reduction of the number of green certificates for the beneficiaries of the cumulation will be defined, so as to avoid overcompensation; In the case of biomass, green certificates will be awarded differently considering the diversity of technologies and raw materials, which lead to different costs of electricity production. The number of green certificates will be reduced with one unit in the case of technologies based on biomass, biogas and bioliquids, except for the biomass resulting from energy crops, and the reduction will be of two units for the technologies based on waste and mud fermentation resulting from wastewater. The over-compensation mechanism and the obligation of the investors in power plants from renewable resources with an installed capacity higher than 125 MW to send separate notices to the European Commission before taking advantage of the support system will be defined by law. (May 3rd 2011)