Photovoltaic solar Project in Romania - 2.4 MW
Photovoltaic Project in Romania - 2.4 MW
January 2013
1. LEGAL FRAMEWORK. Romanian mechanism to support renewable energy.
Romania support renewable energy by using a system of quotas / green certificates. The encouragement of power generation using renewable energy sources is based on the mechanisms established by Law 220/2008 (republished in August 2010).
The quota system The 220/2008 Law fixes an annual quota of total energy consumption nationwide to receive incentives through green certificates (GC). The fees are as follows: 
The annual fees required for electricity produced from renewable energy sources that benefit from the promotion system of green certificates (GC) for the period 2010 to 2020 are as follows: 2010 - 8.3%; 2011-10 %, from 2012 to 12% from 2013 to 14% from 2014 to 15%, from 2015 to 16%, from 2016 to 17%, from 2017 to 18%, from 2018 to 19%, from 2019 to 19.5% from 2020 to 20%.
For every MWh produced from renewable energy sources (except for large hydroelectric stations) the producer will receive a different amount of GC : a) For electricity from hydroelectric stations, with a maximum of 10 MW of installed capacity: (i) 3 green certificates for each MWh produced and delivered if the hydroelectric plants are new; (ii) 2 green certificates for each MWh produced and delivered if the hydroelectric plants are renewed; b) 1 green certificate for each 2MWh hydroelectric plant with a maximum of 10 MW of installed capacity, which are not considered in the conditions explained in the preceding paragraph, a); c) 2 green certificates until 2017 and a green certificate from 2018 for each MWh produced and delivered by the producers of electricity from wind power; d) 3 green certificates for each MWh produced and delivered by the electricity of the sources provided in art. 3 par. (1) Let d) - i); e) 6 green certificates for each MWh produced and delivered by the producers of electricity from solar energy.
Photovoltaic Project in Romania - 2.4 MW
The Green Certificates (GC) will be granted for 15 years for solar energy (as well as for wind, biomass and small hydroelectric stations). The GCs have a minimum and maximum selling price (established in 2010 : 55 euros for the maximum and 27 euros for the minimum price). This prices are adjusted annually (inflation) in the EU - 27. After the adjustment of the prices in 2011, the price was set at 56.15 and 27.56 euros. Each trader issues a GCs bond purchase, equal to the market share of the operator using the total number of GCs issued in a specific year. Traders who do not meet their quota will be punished by a fine of 110 euros by the ANRE. The National Action Plan The National Action Plan established by the ANRE and submitted to the EC as part of the prenotification of Act 220, establishes the following renewable energy installed capacity in the coming years:
As seen in the table, in the National Action Plan and the forecast for 2020, there are only two years, 2015 and 2016 respectively, when the production of electricity from renewable energy is expected to exceed the quota obligation. For the remaining years until 2020, energy produced from renewable energy will be below the quota obligation, so it is expected that Green Certificates will be sold at the highest price. Support of photovoltaic technology by the Romanian legal Framework • The goal of the National Action Plan established by the ANRE establishes a very high percentage of renewable energy in the desired overall energy generation Romanian. It encourages the promotion of photovoltaic parks. The photovoltaic capacity installed today, indicates that it is probably that the limit expected until 2010 won’t be reached.
Photovoltaic Project in Romania - 2.4 MW
• The green certificates quota system is very advantageous for solar photovoltaics as it offers 6 GCs / MWh at a high price. GCs are granted for a period of 15 years so their sale is virtually guaranteed for 15 years. • The legal framework prioritizes the injection of renewable energy in the National Energy Network, ensuring the sale of the generated energy.
1. KEY FEATURES OF THE SOLAR PLANT
Situation Field Surface Property of the field Plant Capacity Fixed Structure Estimated production Estimated incomes Estimated anual incomes Estimated cost Internal Rate of Return
Romania (Ialomita Area) 5,4 ha Yes 2.4 MW pitch 35º 3190 MWh 0,386 € / kWh 1.231.340 euros/year (gross) 3.120.000 euros 18%
2. ENERGY GENERATED FORECASTS The 3.1-MW PV project is located in the Ialomita Area, one of the highest solar radiation areas in Romania.
Photovoltaic Project in Romania - 2.4 MW
According to the irradiation data of the area, we’ve developed calculations to estimate the annual energy production of the PV plant in the following table:
Ed: Average daily electricity production of the given system (kWh) Em: Average monthly electricity production of the given system (kWh) Hd: Average daily addition of global irradiation per square meter received by the modules of the given system (kWh/m2) Hm: Average addition of global irradiation per square meter received by the modules of the given system (kWh/m2)
Photovoltaic Project in Romania - 2.4 MW
3. PREVISIÓN DE DOCUMENTACIÓN NECESARIA PARA LICENCIA DE CONSTRUCCIÓN
CHECK LIST - DOCUMENTACIÓN PROYECTO – 2.4 MW Date Expected Escrituras Compra del Terreno Anteproyecto-Memoria Técnica Certificado de Urbanismo Aviz Amplassament Studiu di Solutie Studia di Línea ATR (Aviz Tehnic Racordare) Estudio Geotécnico Avis de la Cultura Aviz OCPI Ialomita Topográfico (Catastro) Aviz de Sistema de Riego ANIF Aviz de Carreteras CTI Aviz ROM TELECOM Studiu de Circulatie Aviz de Mediu PUZ Construction Permit
Obtained
Comments
19/10/2012 16/10/2012 29/10/2012 30/10/2012 Ok ENEL 02/2013 02/2013 02/2013 30/10/2012 basic 31/10/2012 01/12/2012 31/10/2012 01/12/2012 01/12/2012 01/12/2012 08/12/2012 20/12/2012 27/02/2013
4. FINANCIAL ANALYSIS The solar farm building cost has evolved considerably in recent years, mainly due to the falling price of photovoltaic modules, the main element of these systems. Also, the inverters’ costs has decreased and the metal support structure has been simplified. The market evolved so much that has reached a construction cost of € 1.3 million / MW, "turnkey". To finance the construction of this projetcs, there is the possibility of obtaining a « Project Finance » of 60% of the park’s construction cost, so by providing the remaining 40% (520,000 € / MW) it will reduce the effort required to obtain a photovoltaic renewable energy system that will be sending energy to the grid.
Photovoltaic Project in Romania - 2.4 MW
While the solar park is selling the energy generated and trading their green certificates, the price of photovoltaic park doubles in value and it could be sold for â‚Ź 2.8 million / MW, approx.
5. CONCLUSION INTERSUN PROJECTS has a 12 years experience in developing photovoltaic projects in Spain, Italy, Portugal, Bulgaria, Romania, analyzing the evolution of PV markets worldwide. In most markets, the photovoltaic industry has evolved similarly, establishing a great legal framework to promote the implementation of PV projects in the energy landscape and also establishing a legal certainty. Many photovoltaic plants are built and in 3 or 4 years, meeting their objectives. In fact, by 2014 the sector is expected to modify the CVs Romanian photovoltaic offered, the 6 CVs/MWh will be reduced to 3 CVs/MWh.