GUIDELINES

FOR THE PRODUCER OF ELECTRICITY

FROM RENEWABLE ENERGY SOURCES
(E-RES)

SUMMARY
1. WHY PROMOTING THE ELECTRICITY PRODUCED FROM RENEWABLE ENERGY SOURCES?
2. NECESSARY STEPS FOR STARTING-UP A GENERATION CAPACITY BASED ON E-RES,
TRADING THE E-RES AND BENEFITTING FROM THE E-RES PROMOTION SYSTEM
3. I WANT TO START-UP AN E-RES GENERATION CAPACITY. WHAT PAPERS DO I NEED?
4. TO WHOM AND HOW SHOULD I SELL THE E-RES?
5. THE E-RES PROMOTION SYSTEM IN ROMANIA
6. HOW CAN I GET AND TO WHOM SHOULD I SELL THE GREEN CERTIFICATES?
7. WHO DOES WHAT?
8. OTHER USEFUL INFORMATION

ANRE
2007

1. WHY
PRODUCED
SOURCES?

PROMOTING THE ELECTRICITY

FROM
RENEWABLE
ENERGY

The promotion of electricity produced from renewable energy sources

(E-RES) is a high priority of now-a-days for reasons of environmental
protection, increase the energy independence from imported electricity
by getting a wider range of energy sources as well as for other reasons
of economic and social cohesion.
The Directive 2001/77/EC of the European Parliament and of the Council
on the promotion of electricity produced from renewable energy sources
in the internal electricity market represents the first step of European
Union in complying with the Kyoto targets of reducing the greenhouse
gases.
Romania was one of the first EU candidate countries transposing the
Directive 2001/77/EC provisions into its own legislation (see GD no.
443/2003 with modification of GD no.958 / 2005). Its indicative target for
2010 was fixed at 33%, representing the share of E-RES in the gross
national electricity consumption.

2. NECESSARY STEPS FOR STARTING-UP A

GENERATION CAPACITY BASED ON E-RES, TRADING
THE E-RES AND BENEFITTING FROM THE E-RES
PROMOTION SYSTEM
obtaining the authorisations and approvals needed for buildingup the generation capacity,
building up the generation capacity,
obtaining the generation license,
obtaining the qualification certificate for the electricity priority
production,
registration at the Electricity Market Operator (SC OPCOM SA)
for selling E-RES on the DAM (Day Ahead Market),
registration at TSO (CN TRANSELECTRICA SA) for obtaining
the green certificates (GC),
registration at the Green Certificates Market Operator (SC
OPCOM SA) for participating on the centralized market of the
green certificates,
The E-RES producer may sell the E-RES on the electricity market, as
any other electricity producer, obtaining the market price. For covering
the entire generation costs and for obtaining a reasonable profit, the
producer receives a green certificate for each MWh of electricity supplied
in the electricity network. This green certificate may be traded within the
price limits legally set-up.
2

Glossary of terms
Setting-up autorization technical and legal
document issued by ANRE, which, as a result of
the application formulated by a Romanian or
foreign private/legal entity grants it the permit to
develop or refurbish and to operate installation
for transmission, distribution and generation of
cogen electricity and thermal power.
Modernized power plant power plant where it
took place a set of works which leads to an
increase of the technico-economical and
environmental characteristics of at least 30%
from the replacement value of the plant.
Annual demand of green certificates the
number of green certificates corresponding to
the legal annual quota. This demand is obtained
by multiplying the mandatory quota with the
gross national electricity consumption of that
year.
Green certificate document proving that 1
MWh of electricity is produced from renewable
energy sources and supplied into the electricity
network. The green certificate may be traded on
the bilateral contract market or the centralised
market of the green certificates, separately from
the associated electricity quantity.
Electricity produced from renewable energy
sources E-RES electricity produced by plants
using only renewable energy sources, as well
as the proportion of electricity produced from
renewable energy sources in hybrid plants also
using conventional energy sources and
including renewable electricity used for filling
storage systems and excluding electricity
produced as a result of storage systems.
Electricity supplier Legal entity, possesing a
supplying license, which trades electricity on the
electricity market
License technical and legal document, issued
by ANRE that grant to a Romanian or foreign
private/legal entity the permit to trade the
electricity and cogen electricity or to deliver
services needed by the coordinated operation
of the national energy system
Imbalance physical notification - a physical
notification with production, import and received
contractual exchanges not equal to
consumption, exports and supplied contractual
exchanges of the market participant

Each month the E-RES producer:

Receives GC from TSO for the E-RES supplied in the electricity
network
Sells GC within a bilateral contract or on the centralized market of
the green certificates,
Receives the money for the sold GC
Inform the green certificates market operator about the sold GC
within the bilateral contracts
If the annual GC offer has been lower than the annual GC demand, at the
end of the year, the E-RES producer receives for each offered but unsold
GC the minimum value legally set up for that year.

3. I WANT TO START-UP AN E-RES GENERATION

CAPACITY. WHAT PAPERS DO I NEED?
Legal documents issued by the local administration authorities such
as:
city planning certificate includes also details about all the
notifications to be obtained;
building authorisation
Legal documents issued by the network operator the E-RES producer
will be connected to
location approval issued according to the Methodology for issuing
the location approval, ANRE Order no. 38/2003;
technical connection approval issued according to the Regulation
on users connection to the local electricity network, approved by GD
no.867/2003.
Legal documents issued by ANRE
setting-up authorisation
according to the Regulation on electricity sector licensing and
authorising, approved by GD no.540/2004, further completed and
modified, approved by GD no.553/2007 ;
only for power units with installed power higher than 1 MW.
E-RES generation license
according to the Regulation on electricity sector licensing and

authorising, approved by GD no.540/2004, further completed and

modified, approved by GD no.553/2007 ;;
qualification certificate for the electricity priority production

according to the Regulation for qualification of the electricity priority

production from renewable energy sources, approved by ANRE Order
no. 39/2006.
3

Glossary of terms
Annual GC offer the number of green
certificates issued by the TSO during a year
Network operator the distribution operator,
the transmission and system operator - TSO
Distribution operator operation entity owning,
operating, maintaining and developing the
electricity/thermal distribution network
Electricity market operator legal entity
ensuring the trade for the electricity quantities
on the electricity market, which determines the
prices on the Day Ahead Market. The electricity
market operator is SC OPCOM SA
Green certificates market operator legal entity
ensuring the trade of green certificates which
also determines the prices on the centralised
market of the green certificates. The operator of
the green certificates market is SC OPCOM SA
Transmission and system operator legal entity,
possesing a transmission and ancillary services
license. The TSO is CN TRANSELECTRICA SA
Centralised market of green certificates legal
framework for trading the GC between market
participants, organised and administrated by SC
OPCOM SA, based on specific rules
Bilateral market of green certificates the
bilateral contracts negociated between E-RES
producers and electricity suppliers, designed for
selling/buying of the green certificates
Day Ahead Market centalised market for
selling and buying electricity which is
administrated by SC OPCOM SA
Market clearing price the price which the
transactions on the day ahead market are
concluded at, in a certain trading zone, during a
certain trading interval
Priority production the electricity qualified
production
of
a
producer/generation
configuration, for which preferential sale rights
are granted

4. TO WHOM AND HOW SHOULD I SELL THE E-RES?

Glossary of terms
Electricity network all the electricity lines,

E-RES may be sold:

including their support and protection elements,
within bilateral contracts, to electricity suppliers or eligible consumers, at the sub-stations and other electric power
equipment connected to each other. The
negociated prices;
within bilateral contracts, to electricity distributors/suppliers which has
concession contracts with right of exclusivity and which are legally obliged
to buy, at the request of E-RES producers connected to the distribution
networks from their area of exclusivity, the electricity they produced at
regulated prices;
on the centralized Day Ahead Market (DAM)
When selling E-RES on DAM:
E-RES has priority on the electricity market transactions;
the price for E-RES is the market clearing price;
if its E-RES is not accepted during a certain dispatch interval (the
generation-consumption is balanced only through bilateral contracts), the
E-RES producer submits physical notifications for imbalance and receives
the price set up for such situations.

5. THE E-RES PROMOTION SYSTEM IN ROMANIA

Who benefits from the promotion system? E-RES produced from wind,
solar, geothermal, biomass energy, waves, hydrogen as well as the
electricity produced in hydro power units with installed power less or equal
than 10 MW, put into function or modernized starting with 2004.
Which elements the promotion system consist of? Romania has
adopted the mandatory quota system combined with the trade system with
minimum and maximum price limits legally set up for the green certificates.
What does it mean mandatory quota? For each year between 2005 and
2012, the mandatory quota for E-RES the electricity suppliers have to
comply with are set up by law.
The electricity suppliers demonstrate the compliance with the quota system
by the number of green certificates they buy each year. This number has to
be equal to the mandatory quota value multiplied by supplied electricity
quantity.
In case the suppliers do not comply with the annual mandatory quota, they
will pay to the TSO the value of the green certificates they were unable to
buy, in this way:
- since 2005 up to 2007, at a value which represents one and half the
maximum trade value of green certificates;
- since 1st January 2008, at a value which represents double of the
maximum trade value of green certificates.
4

electricity networks may be a transmission

network or a distribution network

Mandatory quota system system for promotion

the E-RES, meaning electricity suppliers buying
mandatory E-RES quota for selling it to their
clients
Renewable energy sources renewable nonfossil energy sources (wind, solar, geothermal,
wave, tidal, hydro-power, biomass, landfill gas,
sewage treatment plant gas and biogases)

Legal framework
Primary legislation on RES
The Electricity Law no. 13/2007
GD no. 1535/2003 regarding the approval of the Strategy of use the renewable energy sources
GD no. 443/2003 regarding the promotion of electricity produced from renewable energy sources
GD no. 1429/2004 regarding the approval of the Regulation of guarantee the origin of electricity
produced from renewable energy sources
GD no. 1892/2004 regarding the system for promotion of electricity produced from renewable
energy sources
GD no. 958/2005 in order to modify GD no. 443/2003 regarding the promotion of electricity
produced from renewable energy sources and to modify and complete GD no. 1892/2004
regarding the system for promotion of electricity produced from renewable energy sources
Secondary legislation on RES
The Procedure for monitoring the issuance the guaranties of origin, approved by ANRE Order no.
23/2004
The Regulation of organisation and functioning of the green certificates market, approved by
ANRE Order no. 22/2006
The Procedure for allocation the amouny of money collected from the suppliers for quota noncomplience, approved by ANRE Order no. 45/2005
ANRE Order no. 46/2005 for the approval of the modification of the mandatory quotas for
acquisition of GC by the electricity suppliers for 2005
ANRE Order no. 37/2006 for the approval of the modification of the mandatory quotas for
acquisition of GC by the electricity suppliers for 2006
ANRE Order no. 52/2005 for establishing the acquisition tariff for the electricity produced by
hydroelectric producers with no portfolio contracts and by the producers which benefit, according
to the law, of the E-RES promotion system
Procedure for monitoring the green certificates market, approved by ANRE Order no. 38/2006
The Regulation for qualification of the electricity priority production from renewable energy
sources, approved by ANRE Order no. 39/3006

6. HOW CAN I GET AND TO WHOM SHOULD I SELL THE GREEN CERTIFICATES?
GC are issued by TSO according to the Procedure of issuing the green certificates, approved by
ANRE.
GC are issued following the producers request and after he obtains the qualification certificate for
priority production from ANRE
The E-RES power units for priority production are qualified:
o annually
o for the entire E-RES production
o for the entire capacity
The E-RES is qualified as uncontrolled priority production except:
o the E-RES produced from biomass and conventional energy sources
o the E-RES produced from geothermal sources
o the E-RES produced from hydro sources from power units with at least 1 day control on the
water flow
The E-RES producers receive monthly from TSO one green certificate for each MWh of electricity
delivered into the network. The green certificates are allocated based on the data
5

supplied by the network operators the producers are connected to.

The E-RES producers may sell the green certificates:
within bilateral contracts to electricity suppliers, at negociated prices;
monthly, on the centralized market of green certificates, organised and administrated by the green
certificates market operator.
The price for traded green certificates must be comprised between the minimum and maximum values.

Betwen 2005 and 2012, the minimum and maximum prices for green certificate are 24 Euro/ certificate
and 42 Euro/ certificate, which are calculated at exchange rate from Romanian National Bank, for the last
working day of December in the preceding year.
If the annual offer of green certificates is lower than the annual demand of green certificates, in the
following year the E-RES producer will receive from TSO the minimum price set up by ANRE for each
unsold green certificate

7. WHO DOES WHAT?

ANRE
Monitor the development and the functioning of the green certificate market
TSO:
Issue on monthly basis the green certificates;
Inform on monthly basis the E-RES producers, ANRE and the green certificates market operator
about the producers receiving the GC and their hierarchy;
Invoice and collect the money from the electricity suppliers not complying with their mandatory quota;
GCMO:
Publish annual prognosis of national offer and demand of green certificates;
Register the bilateral contracts and the information concerning the transactions between the E-RES
producers and electricity suppliers;
Create the GC Register and keep it up-to-date;
Register the participants to the green certificates market;
Ensure a proper functioning of the green certificates market;
Publish on monthly basis the cumulated demand and offer of green certificates from the beginning of
the year;
Send a monthly report to ANRE regarding the evolution of green certificates market.
Distribution operators:
Send to the producers on monthly basis the E-RES quantities supplied by these in the network

8. OTHER USEFUL INFORMATION

The primary and secondary legislation dedicated to E-RES may be found on the ANRE website,
www.anre.ro, on Renewable energy sources.
Information on electricity prices on DAM may be found on the OPCOM website, www.opcom.ro.
Information on the issuing procedure of green certificates may be found on the TSO website
www.transelectrica.ro.
6

 Information on specific procedures regarding the functioning of the green certificates market may be found
on the green certificates market operator website (GCMO), www.opcom.ro.
Following the official request to ANRE, the E-RES producer receives guarantees of origin for the E-RES
supplied in the network.

Reccomendations
For learning more about trade mechanisms of the priority production, you may find useful information in the
Commercial Code of the wholesale electricity market, approved by ANRE Order no. 25/2004.
You may find important primary data necessary for starting up and building an investment in renewable
energy sources (for example wind velocity or solar radiation in Romania) by getting in contact with the
National Meteorological Administration or the research institutes in energy sector.

Mandatory quota* set up by GD no. 958/2005

*Mandatory quota annual percentage of the gross national electricity consumption, in a progressive dynamic for complying with the
national target on 2010