ROMANIA PHOTOVOLTAIC MARKET

Outlook 2013 ÷ 2018

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ROMANIA PHOTOVOLTAIC MARKET: OUTLOOK 2013 ÷ 2018

This market report offers an incisive and reliable overview of the photovoltaic sector of the

country for the period 2013 ÷ 2018. In view of recent cuts in FIT’s announced in Germany,

Spain, France, UK, Czech Republic, Slovakia, Bulgaria and Italy, Romania represents a stable

investment environment in South-East Europe with clear rules and green certificates

support scheme. Current cumulative installed PV capacity in the country is insignificant, but

a number of fully permitted and ready to build project is promptly increasing. Romanian

market has good chances to reach more than 431 MWp in the next 2 years. The report

provides a complete picture of the market situation, dynamics, current issues and future

prospects. You will find more than 60 pages of valuable information in this unique in-depth

analysis of the Romanian photovoltaic market. With comprehensive market data this

report brings clear and concise insights, to help investors in their decision making process.

As 2011 and 2012 were challenging years for photovoltaic industry, the time for taking

right decisions during 2013 and the next few years is limited. Fast changing market

environment with falling module prices, requires relevant and accurate information. For

your convenience we offer opportunity for orders with customized report content. Reasons

to buy this market report are, but no limited to:

Brief overview of the Romanian political and economic environment Solar resource potential in Romania Overview of Romanian photovoltaic market development 2000 ÷ 2018 Grid connected photovoltaic installations for 2012/2013 Future market trends and planned photovoltaic projects for 2013 ÷ 2018 Current market prices of fully permitted and operational photovoltaic projects Romanian legal and energy regulatory framework for renewable projects Key companies and competitive landscape in photovoltaic sector Review of most relevant financing and supporting incentives SWOT Analysis

At next pages you will see the full table of content of this report. To order this report

just fill in and send us the enclosed at the last page order form. If you have any other

questions please do not hesitate to call us on ++359 887 342 475 or write an e-mail to

orders@ineaconsulting.eu

ROMANIA PHOTOVOLTAIC MARKET: OUTLOOK 2013 ÷ 2018

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TABLE OF CONTENTS

FOREWORD .................................................................................................................... 6

1. METHODOLOGY .................................................................................................... 8

2. EXECUTIVE SUMMARY ........................................................................................ 10

3. ROMANIAN POLITICAL AND ECONOMIC ENVIRONMENT ..................................... 13

3.1. Basic country data ................................................................................................... 13 3.2. Political Climate and Ruling Party ........................................................................... 16 3.3. GDP and Economic Growth ..................................................................................... 16 3.4. Electricity Imports and Exports. Electricity prices for business and households .... 18 3.5. Taxes ........................................................................................................................ 20

3.5.1. VAT ....................................................................................................................... 20 3.5.2. Income and Corporate Taxes ............................................................................... 20

4. ROMANIAN PHOTOVOLTAIC ENERGY MARKET .................................................... 21

4.1. General electricity market information .................................................................. 21 4.1.1. Electricity Consumption and Production ............................................................. 22 4.1.2. RES targets to 2020 .............................................................................................. 22

4.2. Photovoltaic market ................................................................................................ 25 4.2.1. Why invest in photovoltaic energy in Romania? ................................................. 26 4.2.2. Romanian solar resource potential ..................................................................... 27 4.2.3. Overview of Romanian photovoltaic market 2000 ÷ 2018 ................................. 28 4.2.4. Market prices for PV projects in Romania ........................................................... 30 4.2.5. Development projects and operational PV plants in Romania ........................... 30 4.2.6. Key solar companies operating on Romanian market ........................................ 34

5. EUROPEAN RENEWABLE ENERGY POLICY LANDSCAPE ......................................... 36

5.1. Romanian RES Regulations and EU Directives ........................................................ 36 5.1.1. Precedent EU regulations .................................................................................... 36 5.1.2. Most recent EU renewable energy policy developments ................................... 36

5.2. Renewable energy mandatory targets for Romania set out by the EU .................. 37 5.2.1. Interim targets set out by the EU ........................................................................ 37 5.2.2. National support schemes flexibility allowed by the EU ..................................... 38

5.3. PV LEGAL Project ..................................................................................................... 38

6. ROMANIAN RENEWABLE LEGAL AND REGULATORY FRAMEWORK ....................... 39

6.1. Main laws and regulations ...................................................................................... 39 6.2. Zoning, planning and construction related authorizations ..................................... 40 6.3. Environmental related authorizations .................................................................... 40

6.3.1. Natura 2000 Network .......................................................................................... 41 6.3.2. Joint Implementation .......................................................................................... 41

ROMANIA PHOTOVOLTAIC MARKET: OUTLOOK 2013 ÷ 2018

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6.4. Energy law authorizations ....................................................................................... 41 6.4.1. Power Generation Licensing ................................................................................ 41 6.4.2. Grid Interconnection ........................................................................................... 42 6.4.3. Power Off-Take .................................................................................................... 42 6.4.4. Green certificates ................................................................................................ 43

6.5. Financial Incentives and Support for RES electricity ............................................... 44 6.6. Future market pricing mechanisms ........................................................................ 45 6.7. Key Co-financing opportunities ............................................................................... 46

7. KEY ORGANIZATIONS AND INSTITUTIONS ............................................................ 47

7.1. Government ............................................................................................................ 47 7.1.1. The Ministry of Economy, Trade and Business Environment (METBE) ............... 47 7.1.2. Romanian Energy Regulatory Authority (ANRE) ................................................. 47 7.1.3. Ministry of Environment and Forests (MoEF) ..................................................... 47 7.1.4. Ministry of Agriculture and Rural Development (MARD) ................................... 48

7.2. Distribution System Operators (DSO’s) ................................................................... 48 7.2.1. Electrica SA .......................................................................................................... 48 7.2.2. E.ON Energie ........................................................................................................ 49 7.2.3. CEZ ....................................................................................................................... 50 7.2.4. ENEL ..................................................................................................................... 51

8. SWOT Analysis .................................................................................................... 53

9. CONCLUSIONS ..................................................................................................... 58

10. LIST OF ABBREVIATIONS ...................................................................................... 60

11. REFERENCES ........................................................................................................ 62

12. DISCLAIMER ........................................................................................................ 71

APPENDIX I. SOLAR IRRADIATION MAPS OF EUROPE AND ROMANIA ............................. 72

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LIST OF MAPS, CHARTS AND TABLES

Map 1: Where is Romania on the European map ................................................................. 13 Map 2: Major transport corridors passing through Romania................................................ 14 Map 3: Romanian regions ...................................................................................................... 15 Map 4: Solar potential of Romania ........................................................................................ 26 Map 5: NATURA 2000 areas in Romania ............................................................................... 41 Map 6: Districts covered by Electrica SA ............................................................................... 49 Map 7: Districts covered by E.ON Energie Romania .............................................................. 50 Map 8: Districts covered by CEZ ............................................................................................ 51 Map 9: Districts covered by ENEL .......................................................................................... 52 Chart 1: Real GDP growth for the period 2000-2018 (including estimates) .......................... 17 Chart 2: Romanian GDP growth compared to EU-27 for the period 2002 ÷ 2018 ................ 18 Chart 3: Electricity imports and exports for the period 2004 ÷ 2018 (in million MWh) including estimations ............................................................................................................. 19 Chart 4: Corporate tax income in the region ........................................................................ 20 Chart 5: Structure of Romanian electricity market ................................................................ 21 Chart 6: Share of RES electricity in gross energy consumption 2012 .................................... 22 Chart 7: Romanian RES targets in % set by the EU ................................................................ 23 Chart 8: Cumulative developments of PV plants in Romania in MWp from 2000 to 2018, including estimates ................................................................................................................ 33 Chart 9: Market Shares by Sales of the Major DSO’s in Romania in 2012 ............................ 48 Chart 10: Structure of E.ON Energie Romania ....................................................................... 49

Table 1: Electricity prices for business and households ........................................................ 19 Table 2: Support schemes for RES generation in the EU countries ....................................... 25 Table 3: Market prices for PV projects in Romania for 2013 ÷ 2018 .................................... 30 Table 4: Selected operational, under construction and planned photovoltaic projects in Romania ................................................................................................................................. 32 Table 5: Green certificates for electricity from PV sources in Romania ................................ 44

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