Archive for the ‘petrom’ Tag

Romania: Vestas wins 54 MW contract

Børsen, 16 Apr 2010, online: Link to source home page in Danish

Danish Vestas has received an order from Romanian oil and gas company Petrom for the supply of its V90 wind turbines to SC Wind Power Park SRL in Dobrogea. The wind farm is scheduled to be completed by mid-2011. Petrom estimates that its investment in the project will amount to around EUR 100mn (USD 135.71mn).

See also https://raduvoinescu.wordpress.com/2009/04/10/petrom-verde/

The status in the Romanian wind energy industry

Reported by Ana Maria Nitoi, from the Diplomat, organizer of an industry-event: http://www.thediplomat.ro/articol.php?id=553

– I will take the liberty of copy-pasting the text here, giving the publication and author full credit, only because articles from the 2008 Green Energy Romania conference have disappeared from the website and it’s a pity –

Wind future held back by legal blockage

A delay for over a year in fixing legislation for renewable energy is holding up hundreds of million of Euros ready to fund wind energy in Romania, so investors are heading south in search of a breath of fresh air

Government failure to pass a law which would regulate and bring cash into the renewable energy sector is holding back investment in the new industry, all major players agreed at a recent ‘Green Energy for Romania’ conference.
Investments of 100 millions of Euro are being postponed until the Government clarifies a stable regulatory framework for renewable energy sources. Unclear legislation prevents financial institutions from funding green energy projects and this blocks the sector from developing. Many potential investors wanting to raise turbines in Romania’s wind-rich eastern counties are now decamping to Bulgaria, Czech Republic and Poland.
The obstacle is Law 220 on renewable energy. The Parliament passed this law in October 2008, but this cannot be applied until secondary legislation is approved by the Government.
The new law clarifies a mandatory quota of so-called ‘green certificates’, that each electricity distributor must purchase from a green energy producer every year. One green certificate represents one MW per hour of electricity generated and delivered to the national grid. The purpose of the scheme is to bring an extra funding mechanism to green energy.
On the surface, the delay is due to a bureaucratic hiccup. One year after the law had been passed, the authorities realised that it cannot be applied until the European Commission certifies that the green certificates support scheme is not state aid. Now authorities are preparing documents to send to the EC on the new law, but it is unlikely that the EC will actively discourage the development of green energy in Romania.
Due to the delay, energy regulator ANRE, the Ministry of Economy and Competition Council are shifting the responsibility between one another’s shoulders for their collective failure to spin the new law into action.
The ‘Green Energy in Romania’ event was organised by ‘The Diplomat – Bucharest’ magazine together with wind and solar projects developer Monsson Group, with partners in law firm Wolf Theiss and wind park developers Continental Wind Partners. Below is a summary of key discussion points.

Dana Duica, executive director, Romanian Association of Wind Energy
“We need to take bigger steps in wind energy development because Romania now has only 12 MW installed power capacity in wind, even though we have a significant potential.”

Radu Popoiu, managing director, PS Wind Management, Continental Wind Partners
“The big picture regarding the development of wind power projects in Romania is hampered by legislative uncertainty, difficulties in finding financing and the technical issues related to access to the power grid.”

Bryan Jardine, managing partner, law firm Wolf Theiss
“The adoption of the renewable energy sources law at the end of last year was an ambitious step forward as part of the harmonisation with the European Commission’s directive on renewable energy sources. The law aims at improving the green certificates system that Romania has chosen, as opposed to a feed-in regime [where electricity utilities must buy renewable electricity at above market prices to off-set high costs of renewable power generation], and to set a target for renewable energy sources to generate a 33 per cent electricity supply by 2010, 35 per cent by 2015 and 38 per cent by 2020. We have to take into account that Romania has a tradition in renewables like hydro power. The law itself was quite progressive. But the law required a secondary legislation to be adopted within 90 days from the moment when it was approved and that did not happen.”

Nadina Stanciu, expert at the office for promoting renewable energy and co-generation, Romania’s Energy Regulator (ANRE)
“There is no good news about the legislation yet. The Competition Council wrote to us and also sent a letter to the Ministry of Economy stating that Law 220 has provisions which could be perceived as state aid. This is why the European Commission should be notified before the law can be applied and, thus, before the secondary legislation can pass. We are working on this notification documentation.”

Dana Duica, the Romanian Association of Wind Energy
“Italy, Poland and the UK have in place a similar green certificates system which operate well. They notified the EC first and the Commission stated that green certificates do not represent state aid.”

Bryan Jardine, Wolf Theiss
“Most investors want to invest in Romania, but they question whether the green certificates system will be maintained. Developers face the risk of building wind farms and not being able to exit their investments, as financing is not available due to uncertainties created by the law. Many investors are tired of waiting and have crossed the Danube to Bulgaria. Romania is losing opportunities for foreign direct investment.”

Anca-Maria Teodorescu, economist, financing department, developer Monsson Alma
“Last year, Law 220 really gave hope regarding good cash flows in investments in wind farms, but since there is no secondary legislation the company is not able to make a clear affirmation about the outcome of such an investment. Now we are selling green certificates on the [Romanian] market. This is only one green certificate per MWh now, but two [as the new law stipulates] would have been great.”

Ciprian Diaconu, advisor to the general director of the transmission grid company Transelectrica
“The secondary legislation should clarify the uncertainties in Law 220. For example, it is not clear who is paying for the connection to the grid: Transelectrica or the developer. These clarifications should be settled fast. Now the electricity demand in Romania has decreased by ten per cent [compared to last year]. The situation in neighbouring countries is even worse. Romania’s electricity export has decreased by 30 to 40 per cent. There is also a lack of clarity on who is in charge in Romania with renewable energy. ANRE is the energy regulator, the Government is responsible for strategy, Transelectrica is responsible for the security of the grid, the distributors are participating with producers to the supply of the customers. But who is responsible in the end?”

Dana Duica, the Romanian Association of Wind Energy
“There are 1,493 MW installed power capacity approved with grid connection contract and 2,401 MW with a grid connection permit. Will there be any room left for others?”

Ciprian Diaconu, Transelectrica
“The grid can absorb another 4,000 MW, but I do not know when this will be possible. Transelectrica has a plan to reinforce and extend the grid. The European average shows that between five and ten per cent of the total cost of the project is related to the connection.”

Bryan Jardine, Wolf Theiss
“The costs with the grid connection can be split. The developer can invest in electricity transmission substations, with the cost being shared with Transelectrica through reduced connection tariffs.”

Alexandru-Valeriu Binig, director financial advisory, consultants Deloitte
“The second dimension of Transelectrica is to be the entity that follows the balancing capabilities in this country [A country needs to balance between different types of energy to guarantee security of supply, such as ensuring a constant flow of energy from coal power is available if the wind is not strong enough to turn the turbines]. Unfortunately the interconnection grid of Romania with its neighbours is not strong enough to bring from abroad the necessary balancing point. Transelectrica cannot influence the balancing capacities in the Romanian power generation sector, which are meant to provide safety to the operation of the entire system. So they look with hope to Petrom’s new investment in a 860 MW gas-fired power plant in Brazi. Transelectrica is thinking how it can delay the penetration of wind power until Romania has technical capabilities to balance it. But the law obliges Transelectrica to give free access to the grid under certain technical conditions. Now that there is not such a strong penetration of wind power generation, this creates a situation of calm until secondary capacities are developed.”

Ciprian Diaconu, Transelectrica
“In the balancing market, except for Petrom’s project which is under construction, all the rest [such as the Tarnita-Lapustesti hydro power plant project] are historical projects that we keep talking about.”

Adrian Muriel Carrasco, international business development manager, Gamesa
“In Spain we have a feed-in tariff which is much more simple [than the green certificates system]. We are looking to invest in Bulgaria which has a feed-in tariff system.”

Alexandru-Valeriu Binig, Deloitte
“The feed-in tariff system in countries such as Germany works in states which have financial resources to promote renewables. Romania has to allocate a relatively limited amount for supporting the renewables, which is why the mandatory quotas and the green certificates help the administration to keep the penetration of the renewables up to a certain level. Otherwise if we open the tap and say we will adopt feed-in tariffs we will really see 20,000 MW of renewables in Romania and the question would be who will pay for the electricity bill?”

Roy A. Maybud, president, Energy Holding
“We are talking about green certificates as if they are dropping from heaven. Green certificates are going to be paid by end consumers. Renewable systems will have to be developed further until they will not be so expensive that they are a burden to the end consumer. Governments should also support this by allocating funds for research.”

Financing held back

Claudia Pendred, director for Romania, the European Bank for Reconstruction and Development (EBRD)
“We are discussing with developers and utility companies about renewable energy, in biomass and wind, and we would be interested in financing these projects. But until we have a clear, stable and transparent regulatory framework, it is difficult for the EBRD and project developers to know what the cash flow of the projects is going to be and, in this case, it is difficult to finance them.”

Cosmin Cadere, business development manager, Mitsubishi Corporation
“We are looking to invest not just in wind power, but in any kind of renewable energy projects, as well as in conventional energy. The economic crisis means our company will focus on investing in innovation and renewable energy sources are a major part of our strategy. In Bulgaria the company has already decided to invest in a 200 MW wind park precisely because they have a more stable legislation [than Romania] and because there is a feed-in tariff system. If Romania had a similar feed-in tariff system we would be glad to jump in. Until then we are rather looking to the Czech Republic and Poland.”

Valentin Cudric, investment director, NBGI Private Equity, the investment management arm of the National Bank of Greece
“We have an investment fund dedicated to the energy sector. We have identified some good wind energy projects in Romania, but we face the same problem. There is so much uncertainty about the law that my colleagues from London, where our head office is, have shifted to Bulgaria where there is a feed-in tariff system in place.”

Projects stumped

Ciprian Glodeanu, senior associate, Wolf Theiss
“We are working with developers for which we have secured several sites with the intention to develop 17 wind farms. One of the projects is in an advanced stage. And the most challenging was the environmental permit. It was very difficult to explain to environmental NGOs and authorities the benefits of the project. I don’t think there will be a flux of investors quite shortly.”

Pal Peter, vice president, EnergoBit
“Our [wind energy] project is in a developed stage and we are going to stop it for now because of the many uncertainties. We are not going to invest as long as the legislation is not finished. EnergoBit also provides electrical components and has a contract with CEZ for its onshore wind farm in Constanta county.”

Dana Duica, the Romanian Association of Wind Energy
“We calculated a developer needs 101 permits to build a wind farm. Romania needs to simplify the administrative procedures. I salute the initiative taken last week in regard to the construction permit which will no longer be issued by local councils but by city halls. This is an example that Romania is at the beginning and is learning from its mistakes.”

Anca-Maria Teodorescu, Monsson Alma
“About two years are needed until all the documents are put together, including the wind studies for the area. Buying or renting the land also requires hard work. I know about a company that wants to build a wind farm and which needed more than 1.5 years to obtain the land-planning permit. It doesn’t depend on the developer, but on the authorities.”

Florin Frunza, head of business development and administration, Power Division, Petrom
“Petrom is interested to diversify into renewable energy, but so far we have not decided yet to invest in any project. We will probably partner with a developer. It would probably be cheaper to buy now a project but we will wait until the situation clarifies.”

Radu Gavrila, director of the wind energy division, Energia Verde
“We are developing about 15 wind projects in Dobrogea and Moldavia. Some local administrations are so small, that they do not even have a land-planning department. Therefore, for them it is difficult to offer that service, especially now when the Government decided to cut costs in the public system by 20 per cent, which in most cases means laying off people. How do we help local authorities to develop their services? We have a park in Tulcea for which we have land-planning permit and we are discussing with engineering companies for the design. In Braila county we have a 100 MW project.”

Event report by
Ana Maria Nitoi

Petrom Verde

Un prieten si partener mi-a trimis azi un link catre un articol din Business Standard in care e vorba de politica de energie regenerabila a grupului Petrom.

Vreau sa imi incep articolul prin a spune ca am respect pentru competenta angajatilor Petrom. Motivele acestei increderi sunt mai multe, insa nu fac obiectul conversatiei.

Insa, dincolo de disclaimer, sa vedem despre ce e vorba. Se anunta, pentru o a mai multa oara, intentiile Petrom de a cumpara sau/si dezvolta un portofoliu de proiecte energetice bazate pe surse regenerabile de energie. Mi se pare ca anunturile „concrete” au inceput prin octombrie 2007, odata cu lansarea diviziei de energie a grupului. Divizia si-a anuntat intentiile de a „initia” proiecte solare, hidro, eoliene si geotermale, insa nu au fost facute publice obiective concrete si masurabile in MW.

De atunci, atat in presa, cat si in cadrul unor evenimente, Petrom si-a anuntat intentia de a dezvolta sau de a cumpara proiecte de energie regenerabila. O sa vorbesc doar de ceea ce stiu eu mai bine, si anume de energia eoliana. Acum un an, la o conferinta pe tema energiei din surse regenerabile, Petrom anunta public ca este in discutii privind achizitia unor proiecte, insa nu poate ivulga nimic concret. Fair enough. Se pare ca nu s-a concretizat nimic, din moment ce nu au anuntat nimic. E ok, se mai intampla. Insa uite ca acest efect de anunt continua sa se auda, ca un ecou fara sfarsit, sau un efect de oglinzi:

http://www.zf.ro/burse-fonduri-mutuale/petrom-vrea-energie-hidro-si-eoliana-prin-infiintarea-diviziei-de-energie-3066521/

http://www.wall-street.ro/articol/Companii/33821/Petrom-a-infiintat-o-divizie-de-energie.html

http://www.zf.ro/companii/petrom-se-pregateste-pentru-productia-de-energie-in-2010-3026913/

http://www.zf.ro/companii/petrom-se-bate-cu-greii-europeni-pentru-energie-eoliana-3093288/

http://www.zf.ro/burse-fonduri-mutuale/petrom-face-primii-pasi-pentru-productia-de-energie-verde-3176079/

E clar, presa e interesata de subiect. Comunicarea functioneaza.

Intrebarea e insa cata crezare sa dai unui nou articol care reia aceeasi tema. Petrom zicea ca baga 2,3 milioane in dezvoltarea sau cumpararea de proiecte eoliene in 2008-2009. Suntem in 2009. Status?

„Petrom se pregateste sa produca energie eoliana in 2010” – greu de crezut ca ar atinge acest target, chiar daca e real si nu doar o interpretare gresita a unui jurnalist, cum se mai intampla.

Ajungem insa la o situatie de tipul „Petrica si lupul”: cine o sa-i mai creada, cand tot ce fac este doar sa spuna ca „vine vantul” si de fiecare data pana acum a fost alarma falsa?

In alta ordine de idei, insa, acum e mult mai ieftin sa cumperi proiecte eoliene in curs de autorizare decat anul trecut, asa ca uite, asteptarea poate sa fie profitabila, cu conditia sa nu se eternizeze.

Pe scurt, ma intreb: „Lentoare simptomatica sau lentoare profitabila?”. Sunt dispus sa dau mai mult decat dreptul la replica diviziei de energie.

Radu Voinescu

Energie eoliana

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