Barriers In Developing Renewable Energy Projects

For the last few months, all attention in the Romanian renewable energy sector has been centered on the outcome of the authorisation of the support scheme regulated by Law 220/2008 on the promotion system for the energy generation from renewable energy sources by the EU Commission. The uncertainty surrounding the support scheme has led to a slowdown of investments in renewable energy projects. The lack of predictability of the cash flow questions the bankability of the projects and thus financing institutions are reluctant to finance renewable energy as long as the support scheme is not confirmed. Uncertainty is now growing as it appears that full cumulating of green certificates and subsidies will not be allowed, no requirements being clearly set yet in this area.