Romania is preparing a state aid scheme for large industrial producers with a budget of EUR 580 million over the next six years, prime minister Marcel Ciolacu announced before the March 20 government meeting, according to an executive's press release.

The aid reportedly consists of prolonging and possibly further sweetening the 10-year partial exemption to the payment of so-called "green certificates," extended in 2014 to industrial consumers depending on their energy intensity.

"Today, we are analyzing the proposal for a state aid scheme of almost EUR 580 million, over 6 years, for large energy consumers. It is vital to keep our economy competitive and to help 200 of the country's most important industrial producers. In addition, a European support plan for steel and metallurgy is also being prepared, so we are on the same page with Brussels, where we will notify this state aid," PM Ciolacu said.

Under the scheme, Romania would reportedly prolong for six years and broaden the focus of the preferential regime extended at the end of 2014 to large industrial companies, according to the government's draft project consulted by Profit.ro.

The state aid consisting of exempting large industrial consumers of electricity from part of the mandatory quota for the purchase of green certificates intended to subsidize renewable energy producers, in force since 2014 and which expired at the end of last year, is to be prolonged by 6 years, with an increased number of beneficiaries, according to a draft regulatory act discussed by the executive, Profit.ro reported.

On October 15, 2014, the European Commission approved the green certificate reduction scheme for large energy consumers in Romania.

Previously, in July 2014, Romania notified its plans to reduce the contribution to renewable energy financing for certain undertakings operating in sectors with a very high level of electro-intensity and trade exposure. The contribution of beneficiaries to renewable energy support has been reduced by 85%, 60%, or 40% for the companies that demonstrated an electro-intensity of more than 20%, between 10% and 20%, and between 5% and 10%, respectively.

iulian@romania-insider.com

(Photo source: Gov.ro)