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    Maria Elena TEODORESCUMaria Elena TEODORESCU Ministry ofMinistry of

    Environment and Sustainable DevelopmentEnvironment and Sustainable Development

    Adrian MOACAAdrian MOACA -- ARCEARCE

    Status Quo of Present Energy Situationin ROMANIA

    Lviv, Ukraine, 6-7 May 2008

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    Overview ofOverview of Energy SectorEnergy Sector

    Supply OptionsSupply Optionsin Romaniain Romania

    TThe energy sector is characterized by:he energy sector is characterized by:

    ccoo

    --generation plants for urban heatinggeneration plants for urban heating

    eextensive use of coalxtensive use of coal--fired installations for power and heatingfired installations for power and heatinggeneration systemsgeneration systems

    uuse of hydroelectric power plants and potential for strongse of hydroelectric power plants and potential for strong

    development in this sectordevelopment in this sector nnuclear energy provision from the Romanianuclear energy provision from the Romanian--Cernavoda plantCernavoda plant

    The energy sector in Romania is supervised currently by theThe energy sector in Romania is supervised currently by the

    Ministry ofMinistry of Economy and FinanceEconomy and Finance..

    Several private companies areSeveral private companies are responsible for electricityresponsible for electricity

    transmission, and is alsotransmission, and is also for thefor the system and market operatsystem and market operation.ion.

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    The present share of RES in total energy production

    The RES energy quotafrom the total of energyconsumption is: 27 %(including large hydro)

    The RES electricity quotafrom the total electricityconsumption is: 29 %

    (including large hydro)

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    Within the STRATEGY FOR THE UTILISATION OF RENEWABLE ENERGYSOURCES is highlighted the energy potential of RES in Romania

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    2010 Renewable energy sources a share of 11% on thetotal primary energy sources;

    2010 A share of 33% from total of generated electricityproduced from renewable energy sources;

    target concerning the share of electricity produced

    from renewable in the gross internal electricityconsumption is: 2,22% for 2006, 3,74% for 2007,5,26% for 2008, 6,78% for 2009 and 8,35% for2010-2012.

    2015 Renewable energy sources a share of 15% on thetotal primary energy sources.

    Objective of national strategy for renewable energy development

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    Romania transposed in national legislation the provisions of:

    Directive 2001/77/CE regarding promotion electricity produced from renewableenergy sources GD 958/2005

    Directive 2003/30/EC for promoting the use of bio-fuels and other renewable fuels

    for transport GD1844/2005

    Energy Law (no.13/ 2007) general provisions for renewable promotion

    G.D 199/2000 - regarding the efficient use of energy, with further modification,

    G.D 56/2006 G.D 1535/2003 - Strategy for the renewable energy use G.D 1892/2004 - regarding establish the promotion system for electricity

    produced from renewable energy sources

    Legislation regarding renewable energy sources

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    Romanian Enerhy Regulatory Authority - ANRE regulation:

    Procedure for certification of priority production

    Regulation regarding the green certificate market

    Regulation for issuing guarantees of origin

    Regulation for energy labeling

    Procedures of the market operator :

    For issuing green certificates

    For organizing the centralized green certificate market

    Specific national legislation

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    Promotion strategy for renewable energy development

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    Promotion of renewables in Romania

    Mandatory quotas of green certificates

    The suppliers have the obligation to buy green certificates to cover a quotafrom the electricity sold to their consumers:

    2005 - 0,7%

    2006 - 1,4%

    2007 - 3,74%

    2008 - 5,26%

    2009 - 6,78%

    2010 .... 2012 8,3%

    The regulator may change these quotas established by GD, when the greenelectricity production is insufficient;

    Penalties

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    Promotion of renewable energy sources

    Green certificates market and mandatory quotas for suppliers

    Advantages:

    - Market oriented mechanism;

    - Fair allocation of costs among final electricity consumers (eligible andcaptive);

    Disadvantages:

    - Less attractive for investors than feed in tariff system;

    - Complicate penalizing system.

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    Solar energy

    Wind energy

    Hydro power plant 10MW

    BiomassGeothermal energy

    Renewable Energy Sources eligible to receive GC

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    The National program for the reduction of energy costs for the population,by increasing energy efficiency and using renewable sources of energy

    2006-2007-development of district heating networks for: Vatra Dornei andVlhita.

    2006 - the utilisation of geothermal energy in housing from Livada and

    Scueni .

    - commissioning of the micro hydro power plants to power the publiclighting in the city of Geoagiu.

    Environmental Fund is a fund supplied by penalties for pollution and statebudget. Only renewable projects could be financed from this fund, not energyefficiency

    Financial support for renewable projects

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    Key Areas of Intervention

    Efficient and sustainable energy (improving energy efficiency andenvironmental sustainability of the energy system)

    Valorisation of renewable energy resources for producing greenenergy

    Diversification of interconnection networks in view of strengthening

    security of energy supply

    Indicative operation

    - investments in upgrading and building new power and heating production

    capacities by valorisation of renewable energy sources: biomass, microhydro, solar, wind, geothermal, bio fuels and other renewable resources.

    Sectoral Operational Programme

    INCREASE OF ECONOMICCOMPETITIVENESS

    Priority Axis 4:Increasing energy efficiency and security ofsupply, in the context of combating climate

    change

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    In accordance with the solar energy potential 5areas have been identified in Romania, (0, IV),

    differentiated by energy values

    SOLAR ENERGY

    ROMANIAN SOLAR RADIATION MAPAt present the most significant installed power are at the

    -Polytechnic University of Bucharest

    (30 kW),

    - Valahia University (10 kW)

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    WIND ENERGYWIND ENERGY

    In Romania have been identified 5wind areas (0. IV) according to the

    energy potential, environmental and

    geographical conditions.

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    Development of energetic potential biomass could cover 70% from Romaniancommitment regarding the percentage of renewable energy in total energy

    consumption.

    Wood waste biomass distribution map in Romania

    Biomass is grouped in two categories:

    - Firewood & agriculture waste, etc.,- Wood waste from industrial

    processes

    The biomass energy potential amounts to

    84.74 TWh /year,

    15.5% waste materials from woodprocessing industries and fuel wood,

    6.4% sawdust and other wood wastes,

    63.2 % agricultural wastes,

    7.2 % municipal wastes

    7.7% biogas.-

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    GEOTHERMAL POTENTIAL IN ROMANIA

    At Ministry of Administration and Interior there isAt Ministry of Administration and Interior there is PILOT PROGRAM :PILOT PROGRAM :

    10 schools will be equipped with heat pump that replace stoves a10 schools will be equipped with heat pump that replace stoves andnd

    decrease pollution.decrease pollution.

    Aplications:

    Campia de Vest (Oradea Bors)

    Valea Oltului (Calimanesti Caciulata)

    Zona Bucuresti Nord (Otopeni)

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    BIODIESEL (1)

    Investments:

    - Auto Elite Baia Mare50.000 t biodiesel/year

    - Lehliu Gara, Biomart investments (47 mil. - Martifer Portugal) -rafinery and oilprocessing plant, 100.000 t biodiesel/year, capacity:50.000 ha rape seed crop

    - Ultex ndreiprocesses 175.000 tones of grains soy, 4500 t biodiesel/year

    -Ulerom Vaslui 18 mil. investment 60.000 t biodiesel/year, with furtherpossibilities to attain 120.000 t biodiesel/year.

    - Rompetrol Rafinaryinvestments in 60.000 t /year capacity

    Under construction:

    PRUTUL Galai- 25 mil. investment

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    Foreign investmentsBIODIESEL (2)

    - Lehliu Gara, Biomart investments (47 mil. - Martifer Portugal)

    rafinery and oil processing plant, 100.000 t biodiesel/year- Expur Urziceni- 20 mil. investment - swiss firm ALIMENTA

    -ATEL, LOAMNES, Sibiu, 133 mil. investment - MAN Ferrostaal Germany,

    400 t /day

    Financial support for BIODIESEL

    SAPS The direct unique payment on area UE funds; 50,55 euro/ha

    CNDP The complementary national on area national fundsSAPARD Program

    Relief from Excises (FISCAL CODE art. 201)

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    Conclusions

    -- Romania has a significant potential of renewable energy sources

    - This potential is practically unused, excepting for the hydro potential for E-SRE (around 50 %) and biomass for individual heating

    - The existing promotion system for E-SRE through green certificates startshowing its atractivity for new investments

    - The existing promotion system for E-SRE is going to be improved

    - Its necessary to develop promotion mechanisms also for heat productionfrom renewables

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    MINISTRY OF ENVIRONMENT ANDMINISTRY OF ENVIRONMENT AND

    SUSTAINABLE DEVELOPMENTSUSTAINABLE DEVELOPMENT

    12 Boulevard Libertatii, 5 st district RO12 Boulevard Libertatii, 5 st district RO

    www.mmediu.rowww.mmediu.ro

    Maria Elena TEODORESCU, PhDMaria Elena TEODORESCU, PhD

    Head of OfficeHead of Office

    Technical Assistance DirectorateTechnical Assistance Directorate

    [email protected]@mmediu.ro

    ARCE HEADQUARTERSARCE HEADQUARTERS

    Tel.: +40213145929

    Fax: +40213123197

    16 Boulevard Nicolae Balcescu, 1st districtRO 010052 Bucharest 37e-mail:[email protected]

    www.arceonline.ro

    THANK YOU FOR YOUR ATTENTION !