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Support scheme to promote highly efficient cogeneration

In accordance with the provisions of GD 1215 / 07.10.2009 determining the legal framework needed to implement the support scheme for highly efficient cogeneration based on the useful heat demand, instituted under art. 9 par. (2) of GD 219/2007, the National Power Grid Company Transelectrica SA has received the responsibility to manage the support scheme.
The main goal of this scheme is to promote highly efficient systems cogenerating heat and power (CHP) with a view to make electricity output environmentally friendly. It aims at providing energy market access to the electricity generated in highly efficient cogeneration plants. The aid targets the electricity and heat producers that own or operate highly efficient CHP units, with a view to foster new investments in cogeneration technologies and to replace or refurbish existing installations.
This bonus type support scheme is like a state aid approved by the European Commission in 2009. It provides financial support to highly efficient cogeneration plants in order to integrate them on the competitive electricity and heat market. This is done taking into account that such plants comply with the high efficiency requirements while making significant fuel and emission savings, on the one hand, but on the other they register higher generation costs than those that the market price can cover
The scheme began being applied in Romania on April 1st, 2011 when the National Regulatory Authority in the energy domain (ANRE) has established the regulatory framework to implement it.
The scheme is applied from 2011 to 2023, generators being able to benefit of it for maximum 11 consecutive years within the general term of 13.
Order 9/25.02.2011 of ANRE approving the Regulation determining the collection mode for the highly efficient cogeneration and the payment of the bonus for electricity generated under highly efficient cogeneration establishes the steps required in order to implement the support scheme for cogeneration:

  • The administrator of the support scheme is collecting each month the contribution for highly efficient cogeneration;
  • Bonuses will be paid monthly to the producers benefiting of the support scheme;
  • Paying / collecting the unpaid / misplaced bonus to / from the producers benefitting of the support scheme, as resulting from the annual settlement of the highly efficient electricity amount;
  • Collecting the amounts corresponding to the super-compensation of the activity from the producers benefitting of the support scheme;
  • Returning the contribution for highly efficient cogeneration to the suppliers that introduce in Romania electricity generated under highly efficient cogeneration in other EU member states, as certified under guarantees of origin and meant for the Romanian electricity consumers;
  • Monitoring and reporting on the manner in which the support scheme is managed;