Portuguese group EDP Renovaveis has announced plans to take legal action against Romania and Poland over the new energy taxes they created.

Last November, Romania's lawmakers endorsed the emergency ordinance 112/2022 with amendments that prompted protests from renewable energy producers. Particularly, the new regulations confiscate generators' revenues over RON 450 per MWh while insufficiently accepting to deduct hedging and balancing costs that are particularly high for the wind and solar capacities.

Consequently, the owners of wind farms and PV parks may end up paying windfall revenues taxes over revenues they never realised, industry associations RWEA and PARES argued at that time – an issue now raised by EDP.

"EDP will pursue all legal actions to contribute to the return to a fair rule of law that may support much-needed investments in renewables in these countries and within the European Union," the company said, quoted by Reuters, without specifying what action it would take or in which court.

Like other European Union countries and in line with the EC recommendations, Romania and Poland have recently introduced emergency measures to claw back revenue from utilities to help consumers facing soaring energy prices.

EDP Renovaveis said in a statement that it believes the measures in both countries do not follow the European Union principle of clawing back only realised market revenue. It said the new taxes could result in "unreasonable payments" and potential costs of about EUR 300 mln.

EDP Renovaveis operates renewable power plants with a capacity of 697MW in Poland and 521MW in Romania.

andrei@romania-insider.com

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