Research and Conclusions of Legal and Economic Feasibility of Renewable Energy in Romania

Abstract

Base materials used in our research are legal documents of the Romanian and Europeanlegislation specific renewable energy field, which define the legal, economic and financial frameworkand have been applied on four specific case studies (investment projects): production of wind, solar orbiomass energy and geothermal energy efficiency using. Research method used was analysis oflegislative, economic, financial, risk sensitivity and feasibility of solutions investigated. Fullliberalization of energy prices will cause significant increases in energy prices on the market and theonly alternative, in our opinion, is increases of energy efficiency by using renewable energy and / ormechanisms for cogeneration. From our research, the full approval period of a proposed investment inelectricity production in Romania is between 12 and 24 months, plus about two years for investmentimplementation, and costs attached thereto are complete about 200,000 eur / project. We also foundthat the total amounts of implementation costs 1,7 to 1,9 million eur per every 1 MWh installed,depending on the type of renewable resource implemented. The electricity can be traded on theregulated or competitive market, wholesale or retail, using one of the trading platforms operated by SCOPCOM SA. The proceeds from the sale of the electricity, one can add additional revenue from thesale of green or greenhouse gases certificates. The substantive conclusion emerges from studies is that,although Romania has significant renewable resources, is necessary to improve the legal and economicframework that could provides financial security, predictability and stability.