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PATRES: Amendments to Law 123 provide real support to prosumers

1 July 2020
Renewables
energynomics

Bogdan Tudorache

PATRES welcomes the initiative of the Specialized Commission to modify the legal framework for the functioning of the centralized energy market so that it becomes more friendly with renewable energy sources, it is shown in a release of the association.

“We express our hope that ANRE and OPCOM will come up with those mechanisms, through secondary legislation, that will allow a better integration of energy from renewable sources”, say PATRES officials.

“We consider that the bill, which has seen a lot of work at the Committee on Industries and Services of the Chamber of Deputies, comes as a support, especially for prosumers. We appreciate the initiatives of the Specialized Commission, which has made constant efforts to support prosumers. We note that through several amendments/ articles newly introduced in the draft law, which amends Law 123, and a few other normative acts, a big step forward is being made for companies and public authorities that want to become prosumers. We express our hope that the Plenum of the Chamber of Deputies will also vote on these changes,” says Martin Moise, First Vice President of PATRES.

Thus, at the proposal of the Committee on Industries and Services, any prosumer, regardless of power or whether is a natural person, legal entity or local authority, will be exempted from the obligation to purchase green certificates for self-consumption, if the prosumer produced energy from renewable sources. Currently, there is an obligation to buy green certificates for own consumption, a situation at least debatable.

Prosumers who own units for the production of electricity from renewable sources with an installed capacity of no more than 100 kW per place of consumption (it expands from 27 kW as it currently stands to 100 kW) will be able to sell electricity produced and delivered to the electricity grid to electricity suppliers with which they have concluded electricity supply contracts, according to ANRE regulations.

Also at the initiative of the Commission of Industries and Services, electricity producers and public authorities that own power plants from renewable energy sources with installed capacities of up to 3 MW per producer may conclude directly negotiated contracts, only for energy from these plants, only with suppliers of final consumers for the sale of electricity and/ or green certificates.

This gives all owners of power plants with a capacity of less than 3 MW the opportunity to sell the surplus energy directly to suppliers and not through the stock exchange. Unfortunately, the OPCOM energy exchange still imposes standardized, inflexible products that are completely unsuitable for these small producers.

”PATRES appreciates that, through these three articles, investments for self-consumption in the area of prosumers, legal entities or public authorities that have large roof areas and have high energy consumption will be stimulated, such as: malls, supermarkets and hypermarkets, factories, headquarters of institutions, etc. We hope that the state authorities, especially the local authorities, will understand the opportunity and start installing panels for self-consumption on the buildings of the town halls, schools, kindergartens and the buildings they own”.

At the same time, PATRES appreciates the initiative of the Specialized Commission to modify the legal framework for the functioning of the centralized energy market so that it becomes more friendly with renewable energy sources. Through a new amendment introduced in the draft law, “ANRE will have the right to approve the introduction and use of specific products in certain ways of trading on the wholesale competitive market, to ensure flexibility in concluding forward electricity transactions, including with flexible delivery profiles suitable for renewable energy producers”.

“We express our hope that ANRE and OPCOM will come up with those mechanisms, through secondary legislation, that will allow a better integration of renewables. Without such mechanisms or the possibility of direct bilateral contracts – PPAs, new investments are inconceivable and investors will continue to bypass the Romanian energy market,” PATRES officials also said.

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