Grindeanu government adopted last Wednesday a decision establishing a new support scheme for the investments in high efficiency cogeneration. The support scheme is addressed to the large, medium and small enterprises for the newly installed or refurbished capacities.
The total budget allocated to the scheme is 81.1 million euros, out of which 85% are non-refundable European funds provided from the European Regional Development Fund and 15% represent public co-funding provided from the state budget, through the budget of the Ministry of Regional Development, Public Administration and European Funds.
The support scheme applies to the projects which propose as actions
- Development / modernization of the high efficiency cogeneration power plants (maximum 8 MWe) on natural gas and biomass at industrial level;
- Development / modernization of the high efficiency cogeneration power plants, using waste gases from industrial processes.
“The support is granted as non-reimbursable financial allocations and the maximum amount that may be granted to an investment project cannot exceed 15 million euros”, it is shown in the public release. Beneficiaries may submit projects only individually, not through a partnership concluded for the sole purpose of submitting applications for funding.
Thus, the potential beneficiaries are companies in the industry, administrators of industrial parks or heat distributor for an industrial park with energy consumptions of 200 tep (tons of equivalent oil) / year, “which can prove they supply heating for industrial processes with a minimum duration of 4000-5000 hours per year and which require simultaneously a sufficient amount of electricity that can be provided by cogeneration groups”, it is also shown in the statement.
As about the eligible costs, these are:
- additional investment costs for the required equipment in order for the installation to operate as a highly efficient cogeneration plant, in comparison with the conventional plants for electricity or heat of the same capacity;
- additional investment costs for modernization, in order to achieve greater efficiency if an existing plant already achieved the high efficiency threshold
Implementation of the support scheme has as objective a more efficient economy in terms of using resources, much more greener and much more competitive economy, leading to sustainable development and also for attaining the EU objectives of 20% increase in energy efficiency by 2020 and of the overall objective set by the Directive 2012/27/EU of the European Parliament and of the European Council for saving at least 20% of the primary energy consumption in the Union. It shall be granted until December 31st, 2020.
According to the Government, the implementation of the support scheme will lead to savings in fuel consumption and primary energy through high efficiency cogeneration processes and by avoiding the carbon emissions related to fossil fuels. By accomplishing these projects, it is intended a 50 MWe (megawatt electric) increase in the installed power in cogeneration.
The financial support is meant to accomplish Romania’s assumed objectives under the “Priority Axis 6 – Promoting clean energy and energy efficiency to support an economy with low carbon emissions, the specific Objective 6.4 – Increasing the savings within the consumption of the primary energy produced, in cogeneration systems of high efficiency”, part of the large Infrastructure Operational Program 2014-2020.