The government will extend by two and a half years, until the end of 2017, the period during which it will help thermal power plant Mintia, owned by state energy holding CE Hunedoara, sell energy, ensuring guaranteed access to the national power grid of 200 MW.

Provisions in the government decision were to be applied between April 15, 2013 and July 1, 2015. The Government decision in 2013 also included on obligation for CEH to provide ancillary services to transmission system operator to a value of the electric power least 400 MW. The new amendment proposed by the Energy Department increases to 500 MW the electrical production volume required for the safety of the national power system.

Nothing for Oltenia Energy Complex

The draft makes no reference to the Oltenia Energy Complex. The decision from 2013 granted the complex with guaranteed access to the power grids for a capacity of 200 MW, by using Mintia plant to regulate the national energy system.

However, CEO was obliged to supply ancillary services to transmission system operator to a value of electric power of 600 MW.

Impact on Transelectrica’s tariffs

According Transelectrica’s data, cited by economica.net, between 31 March 2013 and 31 March 2014, the tariff for ancillary services increased by 35% in two stages. One of the reasons was “Transelectrica incorporated the additional costs caused by ANRE decision that reserve capacities for the system should be purchased from Oltenia Energy Complex and Hunedoara Energy Complex at fixed prices”. Since the Hunedoara Energy Complex will have some extra 100 MW to provide into the network, it is expected that the tariff will increase more.

A support scheme to correct another support scheme

The explanation note accompanying the draft states that such measures are needed because of the “significant” increase of electric energy from renewable sources, which, with their lower production cost and the aid provided by the green certificates scheme, jeopardize access in the market for energy generated by conventional units, especially those coal-based.