Green energy producers in Romania claim new price regulations put their business at risk

RWEA and PATRES, the two associations that bring together investors that poured EUR 7.7 bln in wind and PV projects with a total capacity of 4.8GWh, claim that the new price capping mechanism just endorsed by the Parliament has the effect of pushing them into bankruptcy and prevent further development of projects with an installed capacity of several GW.

Specifically, the law that endorsed the emergency ordinance (OUG) 119/2022 as amended by the Government is capping the price – as opposed to the profit – charged by the wind farms and PV parks, which often have to pay a high price to make the promised deliveries during the periods when the natural conditions are not favourable, Bursa.ro reported.

The capping mechanism does not price in the expenditures they incur, the two associations of investors claim.

These amounts of electricity purchased by the green energy producers in order to “smooth” their deliveries and bring them in line with the contracts amount to 40% in the case of the wind farms and 25% in the case of the PV parks, they argue.

Under the OUG 119/2022, expenditures related to purchasing only 5% of the deliveries are deductible for the purpose of calculating the windfall revenue tax.

iulian@romania-insider.com

(Photo source: Lovelyday12/Dreamstime.com)

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Green energy producers in Romania claim new price regulations put their business at risk

RWEA and PATRES, the two associations that bring together investors that poured EUR 7.7 bln in wind and PV projects with a total capacity of 4.8GWh, claim that the new price capping mechanism just endorsed by the Parliament has the effect of pushing them into bankruptcy and prevent further development of projects with an installed capacity of several GW.

Specifically, the law that endorsed the emergency ordinance (OUG) 119/2022 as amended by the Government is capping the price – as opposed to the profit – charged by the wind farms and PV parks, which often have to pay a high price to make the promised deliveries during the periods when the natural conditions are not favourable, Bursa.ro reported.

The capping mechanism does not price in the expenditures they incur, the two associations of investors claim.

These amounts of electricity purchased by the green energy producers in order to “smooth” their deliveries and bring them in line with the contracts amount to 40% in the case of the wind farms and 25% in the case of the PV parks, they argue.

Under the OUG 119/2022, expenditures related to purchasing only 5% of the deliveries are deductible for the purpose of calculating the windfall revenue tax.

iulian@romania-insider.com

(Photo source: Lovelyday12/Dreamstime.com)

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