The Employers Organization of Renewable Energy Manufacturers in Romania – PATRES draws a new warning about the lack of transactions with green certificates on PCV, a very serious situation for much of the investors in renewables, especially for small and medium producers.

Last month (June 8th), PATRES drew attention to a situation without precedent: for the first time, on the Green Certificates Market – PCV no green certificate was traded at the trading session that took place on 14 May 2015, the number of offers for sale rising up to 111.

For the second time, during one month, there was a similar situation on the centralized market for green certificates: zero transactions, 91 offers for sale, at the meeting on June 16. For view, here.

The market for green certificates is in total collapse due to major reduction of the annual mandatory quota of electricity produced from renewable energy sources.
It thus appears that, unfortunately, PATRES’s fears are justified: the green certificates market is in total collapse due to major reduction of the annual mandatory quota of electricity produced from renewable energy: in 2014 – 11.1% compared to 15% and in 2015 – 11.9% compared to 16% as it was set out in Law 220.

For illustration, we present a case of the green certificates on the market. Currently, 2.6 million individual green certificates are available for purchase, plus those that have already been issued for May (not yet appearing in the OPCOM reports), we estimate about 1.5 million pieces. In total, there are over 4 million green certificates on the market today that do not have buyers because of very small share.

According to the ANRE information, by the end of the year there will be 6 million plus green certificates on the market (with no buyers), plus the remaining ones from last year (around 3 million green certificates).

Basically, a simple calculation shows that at the end of the year there will be 21 million green certificates market, and providers will have to buy – according to the established rate – only 12 million green certificates.

PATRES noted that this very small share of 11.9% compared to 16% as was initially in Law 220, coupled with the validity of 12 months of the green certificates, will lead to huge losses for producers of renewable energy. The more so since, according to regulations, the green certificates are taxed at the time of grant and not at the actual time of sale. Basically, they are a safe path towards bankruptcy.

In these circumstances, PATRES imperatively calls the responsible authorities to start a broad consultation process in order to develop an equitable and predictable market for all market participants.