Power Purchase Agreement Romania

2.2.2 According to the TSO development plan for 2014-2023 11 Planul de Dezvoltare a RET perioada 2014-2023, 13 March 2014 (called 9 December 2014). Click here, if wind power production exceeds 3GW in the Dobrogea region, a development of the electricity grid will be necessary. In order to ensure the growth of exchange capacity with Serbia and Western Europe and to evacuate electricity from wind turbines and hydroelectric power plants in Portile de Fier-Resita (Westphalia), the development of the transport network in this region (Portile de Fier-Resita-Timisoara-Arad) will also be necessary. Another urban plan is the strengthening of the electricity transmission network by strengthening the 400 kV line between the north-east and the north-west of the national electricity grid. AAEs allow long-term over-the-counter bilateral contracts between electricity buyers and sellers, often lasting 15 to 20 years. Such contracts will allow investors to bypass the risk of volatility on Opcom`s Romanian stock exchange, where electricity prices have fallen by 20-30% since the emergence of Covid-19. However, EGO 74/2020 does not reverse this blanket ban, but extends exceptions to the ban to cover new power generation capacity commissioned after 1 June 2020. The eligibility of directly negotiated AAEs applies to all new generation capacity (not just renewable energy), but it will mainly benefit renewable energy, as this type of investment has prevailed in romania`s electricity generation sector over the past decade and is expected to continue to do so. 2.5.29 On the ASM, the TSO acquires technology systems (or accessories) services from electricity producers in a procedure governed by the ANRE. Acquired ancillary services include secondary reserves, slow tertiary reserves from conventional sources and cogeneration, as well as rapid tertiary reserves. Between 2001 and 2011, some private electricity suppliers (the “Smart Guys”, as the press called it) entered into bilateral contracts to purchase electricity (10-15 years) with state-operated generators (notably Hidroelectrica) under rather unfavourable conditions for them.

Basically, the Smart Guys used to buy electricity from government producers at very low prices, while they made big profits by reselling this cheap electricity at much higher market prices. These AAEs were negotiated directly between the parties outside of an organized market (the whole process and the contract itself were a private and confidential matter), and many of them were losses to state producers who sold (for example. B, Hidroelectrica went bankrupt and finally unilaterally announced all these contracts). 2.5.24 In the case of the WB, the TSO buys and sells electricity to operators with units/consumption points (i.e. units/consumption points where electrical power/electricity consumption can be modified at the request of the EST, to compensate for deviations from the values expected for electricity production or consumption).

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