The green energy associations in Romania, mainly owners of wind farms and PV parks, warned that the so-called windfall tax levied by the Government on surplus revenues derived by all energy producers - except for those burning fossil fuels - is not solving but rather deepening the energy crisis.

Under law 259/2021, the 80% tax levied on revenues generated from the sale of power by power generators (except for those burning fossil fuels), at prices above RON 450 per MWh, is designed to finance the consumer subsidies paid to household power consumers. Separately, the green certificates are temporarily waived for industrial end uses. Both provisions are enforced for the winter of 2021-2022 only.

Overtaxing producers' income from renewable sources and exempting them from paying green certificates will create serious financial problems for operators, potential insolvencies and possibly even the cessation of renewable energy production capacities, green energy associations RWEA, PATRES and RPIA argued, according to Economica.net.

New investments in the sector will be postponed or abandoned at a time when Romania urgently needs new energy production capacity, the associations warned.

andrei@romania-insider.com

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