Electricity

Romania mulls carbon price compensation scheme

Photo: Pixabay

Published

June 14, 2019

Country

Comments

0

Share

Published:

June 14, 2019

Country:

Comments:

0

Share

The Romanian government is considering introducing a scheme for offsetting the cost of the EU Emission Trading System (EU ETS), but details have not yet been announced, local media reported.

The scheme would be available to all companies that are obliged to hold emission allowances. The price of these certificates has increased sharply in the last two years, from EUR 5 to EUR 25 per metric ton.

Florin Ciocanelea, economic advisor to Prime Minister Viorica Dancila, has said that an inter-ministerial committee has been set up to propose a compensation scheme, Economica.net reported. The idea is to offset the costs companies have for purchasing emission allowances. He said that 15 such schemes currently exist in the EU.

The Romanian media are saying that the most affected company in the country is power producer Oltenia Power Complex, which is producing electricity in coal-fired power plants. In 2018, the company paid RON 1.4 billion (around EUR 296 million) for emission allowances. In the same year, the company posted a RON 1.1 billion (EUR 233 million) loss.

Projections by relevant institutions say that the EU carbon price could reach EUR 35 to EUR 40 per ton over the 2019-2023 period.

According to the Report on the functioning of the European carbon market, in addition to free allocation to cover direct carbon costs, EU member states may grant state aid to compensate some electro-intensive industries for indirect carbon costs, i.e. costs resulting from increased electricity prices due to power generators passing on the costs of purchasing allowances to consumers.

To ensure harmonized application of indirect carbon cost compensation across EU member states and minimize competition distortions in the internal market, the European Commission has adopted the EU ETS State Aid Guidelines, which are valid until the end of 2020.

The Guidelines determine, among others, eligible sectors and maximum amounts for compensation of indirect carbon costs.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

Belgrade Energy Forum energy storage is next big thing

Belgrade Energy Forum 2024 – energy storage is next big thing

25 May 2024 - There are exponential opportunities for energy storage investments to facilitate the green transition, main developers and operators in Southeast Europe said at Belgrade Energy Forum

janom investments Andrej Srsen bef 2024

Janom Investments bringing knowhow, investments to Western Balkans

24 May 2024 - Janom Investments is eyeing a portfolio of over 1,000 MW in wind, solar and battery projects in Croatia, BiH, Serbia and North Macedonia

maja turkovic cwp global investments bef 2024

Meet energy transition leaders in SEE: CWP Global is developing 6 GW of solar, wind, storage

24 May 2024 - Vice President for Europe at CWP Global Maja Turković was a panelist at the Belgrade Energy Forum 2024 conference

Western Balkans face tight electricity market coupling deadlines

Western Balkans face tight electricity market coupling deadlines

24 May 2024 - Market coupling is the first task in the Western Balkans energy transition and their main condition to be exempted from CBAM, panelists said at Belgrade Energy Forum