Factsheet: Quota & tradable green certificates

Quota & tradable green certificates

Key Information
Full name of Instrument & Measure (English): 
Tradable green certificate with mandatory quota system
Description: 
Electricity from RES is incentivated by a tradable green certificate mechanism based on mandatory targets (fixed quota) and variable green certificate prices on the basis of market conditions. The annual mandatory quotas for electricity produced from renewable sources that benefit from the GCs support scheme for the period 2010-2020 are the following: 2010 - 8,3%; 2011 - 10%; 2012 - 12%; 2013 - 14%; 2014 - 15%; 2015 - 16%; 2016 - 17%; 2017 - 18%; 2018 - 19%; 2019-19,5%; 2020 - 20%. Biomass, bioliquids and biogas must certify the origin of the biomass fuel in order to be eligible for TGC, by means of certificates issued by accredited institutions; duration of TGC of 15 years, price range of TGC: 27-55 Eur/MWh; penalty for not complying 110 Eur/MWh; The most important recent amendments (Emergency Government Ordinance 57) concern (i) the suspension of granting a certain number of green certificates until 2017, (ii) the possibility for the Romanian Government to change the support scheme at any point in the calendar year, and (iii) a maximum of electricity certified by the green certificate support scheme per annum. This Electricity Law establishes the legal framework for the introduction of a quota system to promote electricity from renewable sources and stipulates the rights and obligations of the persons involved. Law No. 220/2008 complements this framework and obliges electricity suppliers and producers to present a certain number of green certificates by the end of each trimester (art. 8 par. 2 Law No. 220/2008 as referred to in art. 1 par. 7 Law No. 134/2012). The failure to satisfy this obligation carries a penalty (art. 12 par. 2 Law No. 220/2008 as referred to in art. 1 par. 15 Emergency Regulation No. 88/2011 and in art. 1 par. 8 Law No. 134/2012). Furthermore, Law No. 220/2008 sets out the conditions under which the operators of renewable energy plants may receive green certificates (art. 6 par. 1 Law No. 220/2008 as referred to in art. 1 par. 9 Emergency Regulation No. 88/2011 and in art. 1 par. 4 Law No. 134/2012) and trade them (art. 10, 11 Law No. 220/2008 as referred to in art. 1 par. 12, 13 Emergency Regulation No. 88/2011). Electricity generators may sell electricity on the wholesale market (art. 14 par. 1 Law No. 220/2008 as referred to in art. 1 par. 16 Emergency Regulation No. 88/2011). Electricity generated by smallscale installations may be sold to the electricity suppliers for a guaranteedprice, but the methodology is still under construction (art. 14 par. 2 Law No. 220/2008 as referred to in art. 1 par. 16 Emergency Regulation No. 88/2011 and in art. 1 par. 9 Law No. 134/2012). The quota system came into effect on 19 October 2011.
Goal/Aim: 
Support electricity from renewable sources.

Sector/Topic targeted:

Responsible Authority: 
Romanian Energy Regulator Authority

Status:

Year Instrument & Measure Started: 
2011