Creating renewable energy in Romania

Wednesday, Nov 19, 2008

Renewable energy sources (E-RES) increase the diversity of energy supplies and will most likely replace the world’s diminishing supply of fossil fuels (coal, natural gas and petroleum). The use of E-RES resources instead of fossil fuels can substantially reduce greenhouse gases, mostly CO2 and other pollutants. The use of renewable energy also increases the economic independence of users that develop such energy sources. Energy dependence on politically unreliable sources can be vexing. For example, the EU is dependent upon Russian gas and Russia uses that dependence for political leverage to prevent the EU from taking stronger positions against Russian hegemonic activities in places such as Georgia and Moldova.

The EU’s first act to reduce greenhouse gas emissions was Directive 2001/77/EC of the European Parliament and Council on the promotion of electricity produced from renewable energy sources in the internal electricity market. Romania first implemented in its own legislation similar to Directive 2001/77/EC with GD no. 443/2003 with modification of GD no.958 / 2005. Romania’s goal is to produce by 2010 the equivalent of 33% of its gross national electricity consumption requirements soley by renewable energy sources.

Romania has been developing a number of E-RES projects based upon wind energy in particular. For example, Ramia Eol intends to create a windmill park in Marisel, Cluj district, while in Dobrogea, CEZ and Eolica Dobrogea intend to develop their own wind energy businesses. Investors targeting wind technology assert that the income from a windmill park is higher than that of a classic real estate investment as the operational costs are less.

The general legal framework for energy production in Romania is set forth in Law 13/2007 – the electricity law (the “Electricity Law”) which also refers to and enumerates renewable energy sources such as wind power, solar energy, tidal and wave energy, geo-thermal energy, hydroelectric energy, biomass energy, etc.

Creating an E-RES FacilityTo create a new E-RES facility in Romania, interested firms must fulfill certain requirements and obtain a number of documents and authorizations from the institutions and the local authorities authorized to provide them. Investors must secure from local administration authorities a city planning certificate (which includes a list of required documentation) and a construction authorization.