Swedish company Usitall, which specializes in building and operating garbage-fueled power plants, is thinking about investing between EUR 200 and EUR 400 million in two units in Bucharest and Galati. The company will make the decision sometime this fall.

The company has been attracted by the green certificates system in Romania and by the fact that the energy market will be completely liberalized within a couple of years, said Mattias Philipsson, general manager of Usitall, quoted by Mediafax. Usitall previously announced its plans to invest EUR 100 million in a thermal power plant in Tulcea, using waste as fuel, but gave up on the idea in 2009 as the Tulcea network was too small. Now the company is in advanced discussions with the Bucharest and Galati municipalities.

When deciding about the investment in Romania, the company takes into account any potential state help through green certificates and the bonus for high efficiency co-generation. Usitall is also awaiting a Government decision on landfill sites. Romania would have to shut down landfill sites that don't comply with environmental rules and create new ones, or else pay fines, according to its agreement with the European Commission.

Romania offers green certificates to stimulate electricity production from renewable sources.

Transelectrica, the power grid operator, issues green certificates and allots them to energy producers, which can then sell them. Romania aims to generate 24 percent of its energy via alternative sources by 2020.

Usitall is owned by the municipality of the Swedish city of Linkoping.

editor@romania-insider.com

photo source: sxc.hu