Renewable investors in Romania brace for losses

The trade association of renewable energy producers in Romania (PATRES) has asked PM Dacian Ciolos, in an open letter, to take action so as to prevent massive insolvencies and bankruptcies in this sector.

The PATRES said its 200 members have started a protest movement in order to present the difficult financial position of investors in this field.

“At this moment, the situation is critical in the renewable sector. After a series of disastrous decisions taken by former government officials, we are currently witnessing a complete lack of decisions which will trigger massive insolvencies and bankruptcies starting this year,” according to the letter.

The association has also presented the results of a survey it carried out among its members.

The member companies have invested close to EUR 2 billion in the local renewable sector, in addition to another EUR 281 million in other industries. These firms employ 10,000 people.

The renewable producers have been struggling to make money after the government reduced the incentives due to spiraling costs for electricity bills of residential and industrial consumers.

Right now, the association says that Romania should enforce the legislation that was valid when the investments where made. The companies are registering losses of around EUR 201 million due to the constant changes in legislation, according to the trade organization.

Furthermore, PATRES is calling for the scrapping of the validity period for green certificates and for their taxation on the moment of sale and not of issuance.

Investors also want the bilateral electricity contracts to be reintroduced in the legislation.