Invest in wind and solar energy in Romania

Invest in wind and solar energy in Romania

Nr. 20101031

Romania has a wide range of renewable resources: hydro-energy, biomass, solar energy, wind energy and geothermal energy sources. However, they are currently virtually unexploited, except fro hydro-energy which is converted into power both in small and large hydropower plants.


Wind

Since wind energy is traditionally established in Romania and some research units
have built new and efficient plants, the wind energy option is interesting not only
regarding to the production of cheap and clean energy, but it can also contribute to
the development of a “new industrial branch” in Romania.

Advantages: small scale; decentral, supplemental power in windy areas; alternative
for individual homeowner and small villages;

Disadvantages: Highly variable source; relatively low efficiency (30%); more power
than needed is produced when the wind blows; feeding into the grid or efficient
energy storage is thus required;

Romania has adopted the “green certificates” mechanism for encouraging production of electrical energy from renewable energy sources and, currently, there is a functioning market on which “green certificates” are purchased and sold. The following compulsory quotas have been established, as % of annual gross consumption of electrical energy: 2.2% for year 2006, 3.74% for 2007, 5.26% for 2008, 6.78% for 2009 and 8.4% starting with year 2010.Romania has adopted the “green certificates” mechanism for encouraging production of electrical energy from renewable energy sources and, currently, there is a functioning market on which “green certificates” are purchased and sold. The following compulsory quotas have been established, as % of annual gross consumption of electrical energy: 2.2% for year 2006, 3.74% for 2007, 5.26% for 2008, 6.78% for 2009 and 8.4% starting with year 2010.
Romania will promote usage of renewable energy sources by implementing mechanisms for supporting production of energy using these sources (including production of thermal energy and hot water for household consumption), by continuously developing the green certificates market and by attracting private capital investment in this sector.

It has been estimated that the needed investments for usage of renewable energy sources in years 2006-2009 are approximately 500 million EUR.

Romania's wind power projects threefold the capacity of a nuclear reactor

Applications for the connection to the national power grid filed with Transelectrica are threefold the capacity of a Cernavoda nuclear reactor, reports financiarul.com. However, many of these projects will just stay on paper. The most advanced investment is that of CEZ (Czech Republic),the biggest onshore wind farm in Europe, due for completion this year. Grid connection applications by companies that plan to invest in wind power generation total 22,800 MW, eight times the capacity national electricity operator Transelectrica can install. "This significant demand for installed wind power capacity exceeds by far the current adjustment possibilities of the national electricity system. The maximum wind power capacity that can be installed is 2,660 MW," reads a Transelectrica document posted on the website of the National Energy Regulatory Authority (ANRE). According to Dan Preotescu, Transelectica network planning director, grid connection contracts signed so far amount to 1,500 MW and 1,160 MW are still available. "We accept applications by the criterion first-come, first served," says Preotescu. The most advanced wind power investment in Romania is that of CEZ - Czech Republic. The 600 MW wind farm is sited in Dobrogea, at Fantanele and Cogealan, and its capacity is almost equal to that of a nuclear reactor of the Cernavoda plant, which can produce 700 MW. CEZ officials say that 350 MW will be available mid-2010 and the complete 600 MW of clean electricity will be in place at the end of 2010. This will be Europe 's largest onshore wind farm and the total investment amounts to 1.1 billion euros. "It's still unclear what Romania’s wind power capacity will be at the end of the year.

Apart from CEZ, other companies also announced projects due for completion, yet of lesser capacity," said Preotescu. "The other projects totaling 18,900 MW have the studies for the connection to the public network finalized and a considerable part thereof have the documentation submitted for the technical connection approval," shows the Transelectrica release. Dan Preotescu says the biggest issue for investors in renewable energy is not the connection to the power system, but the market, that is where to sell the electricity. In late 2008, Romania’s total capacity of wind turbines was of just 10 MW, below that of neighboring countries. The new wind turbines installed by CEZ will sap the costly technology of local producers in the country, especially power stations. "This investment might hasten the closure of cost-intensive plants like Doicesti, Borzesti, Galati and Braila. On average, a wind farm effectively operates at 30% of the installed capacity. But the aforementioned plants use even less of their capacity. They are kept alive artificially," says energy analyst Jean Constantinescu. The benefits of wind farms are connected to the green certificates award system for the produced energy according to which for 1 MWh of electricity fed into the power grid, the producer gets a double price, allowing him to charge more advantageous fees. In addition, clean electricity is the first fed into the transport networks, which gives the producer an edge over coal or gas fired power plants. The downside is that wind farm Electricity supplies are not continuous, like those of a thermal power plant, because of the variable direction of the wind. Dobrogea is the main target for investors in wind energy facilities. Deputy Gheorghe Dragomir, member of the Budget-finance Committee, estimated that total investments in such farms amount to four billion euros. The main investors in the sector are the Czech CEZ, Italy’s Enel, Iberdrola, Energia de Portugal

Solar

With a solar radiation of 1000 –1500 kWh/m² Romania has a valuable potential for solar energy application. Romania’s geographical distribution of solar energy potential reveals the fact that more than 50% of Romania’s territory benefits from an annual energy flow ranging between 1,000 – 1,500 kWh/m2 per annum. Solar energy potential is given by the average solar energy quantity received in horizontal plane which is estimated at approximately 1,100 kWh/m2 per annum in Romania.

Moreover the country has made efforts to develop the solar energy equipment . Hot water systems as well as systems for drying and industrial application have been installed. Because of the poor quality of the equipment only a small part of these collectors are still in use. Nonetheless Romania has know-how about the installation and the use of solar energy collectors for various purposes.

Given Romania’s meteo-solar climate, a solar - thermal panel can function, within normal safety parameters, from March until October, at conversion levels ranging between 40% and 90%. Moreover, solar panels can also function efficiently in a hybrid regime with both conventional and unconventional thermal systems. In Romania, solar – thermal systems are most frequently used in individual dwellings for water heating processes.

Passive solar systems are usually incorporated in the building’s envelope, most of the construction materials being conventional. In a thermal rehabilitation work and under normal conditions, the average additional cost for the embedded materials in the new building increases by maximum 20% (for renovated buildings).

Solar energy is converted into electrical energy using photovoltaic installations consisting of solar modules of different configurations and dimensions. Romania’s exploitable potential for electrical energy generation by photovoltaic systems is approximately 1,200 GWh per annum.

The investment cost for photovoltaic systems has decreased gradually over the past few decades, the price of a solar module currently reaching approximately 6 $ / 1 installed Watt. The price for electrical energy generated by photovoltaic systems ranges between 25-50 cents/kWh. Therefore, photovoltaic systems are an attractive alternative for isolated consumers and for low consumption levels, considering the high price of connecting to the National Electrical Grid.

Romania will promote usage of renewable energy sources by implementing mechanisms for supporting production of energy using these sources (including production of thermal energy and hot water for household consumption), by continuously developing the green certificates market and by attracting private capital investment in this sector.

In Romania, several projects based on photovoltaic systems of different power and functioning regime were initiated, as part of research – development - demonstration programs. Some of them include:

• Autonomous systems – for supplying isolated consumers (individual households, socio-cultural centers in Apuseni Mountains, Black Sea shore or the Danube Delta), radio - telecom stations, water pumping systems, public lighting, traffic signaling, in line with the objectives of the rural electrifying program.
• Systems connected to the electrical grid (photovoltaic pilot stations with mobile panels, building integrated systems etc.)


Advantages: always there; no pollution;interesting as a stand alone solar parc on a land o nor a building;

Disadvantages: low efficiency (5-15%); very high initial costs; lack of adequate
storage materials (batteries); high cost to the consumer;

Some projects in solar energy in Romania

Solar power in Romania had in 2007 an installed capacity of 0.81 MWp. Romania is located in an area with a good solar potential of 210 sunny days per year and with an annual solar energy flux between 1,000 kWh/ m2/year and 1,300 kWh/ m2/year. From this total amount around 600 to 800 kWh/ m2/year is technical feasible.[2] The most important solar regions of Romania are the Black Sea coast, Dobrogea and Oltenia with an average of 1,600 kWh/ m2/year.

Romania was a major player in the solar power industry, installing in the 1970's and 80's around 800,000 square metres (8,600,000 sq ft) of low quality solar collectors that placed the country third worldwide in the total surface of PV cells. One of the most important solar project was the installing of a 30 kW solar panel on the roof of the Politehnica University of Bucharest that is capacble of producing 60 MWh of electricity per year.

Rominterm, a Romanian company, will install until 2010 a total of 600 solar panels in Mangalia, Constanţa County that will make the city self sufficient in terms of heated water during the summer months and provide around 70% of heated water in the winter months and another 1,150 solar panels used for the generation of electricity spread over an area of 1,400 square metres (15,000 sq ft). Another Romanian city, Alba Iulia, installed a total of 1,700 PV cells on several public buildings that produce 257 kWh of electricity per year. Other cities include Giurgiu with 174 solar panels and 391.5 kW installed capacity and Saturn, Romania with 50 panels and 112 kW installed capacity.

The Covaci Solar Park will be Romania's largest solar power plant at completion having a total of 480,000 solar pannels with a combined capacity of 35 megawatts and will be located in Timiş County. Another important site is the Gura Ialomiţei Solar Park in Ialomiţa County which will have a capacity of 10 megawatts. Other solar parks include the Satu Mare Solar Park located in Satu Mare County which will have a capacity of 5 to 8 megawatts and the Sfântu Gheorghe Solar Park located in Covasna County that will have a capacity of 2.4 megawatts.
Source: wikipedia
Source: EVD, market survey Romania
Source: Agerpres.
Source: www.investromania.be

Freddy Jacobs
30 October 2010
cibr@telenet.be