Biogas Production Plant with the capacity of 1 MW / h

° investment /financing / loan value: 6,250,000 - 7,000,000 Euro;

° co-financing value (EU funds): 4,375,000 - 4,900,000 Euro (70 %);
° shareholder’s contribution: 1,875,000 - 2,100,000 Euro (30 %);
° required infrastructure and raw materials:
° land within / outside the built up area: 2-3 ha (depending on equipment capacity);
° energy infrastructure (for power supply in National Energy System);
° 15.500 - 17.000 tons vegetal mass / year;
° approx. 4.500 tons wastes of animal origin / year (necessary for the mixture with the vegetal
mass, in Biogas Production Plant);
° number of employees: 17 persons;
° tThe business may be developed on a Start up type firm or on an existent firm;
° total incomes / 10 years: 33.252.020 Euro;
° total expenses / 10 years: 16.877.931 Euro;
° loan value: 6.250.000 Euro;
° interests value / 10 years: 2.890.625 Euro;
° gross profit / 10 years: 16.374.089 Euro;
° net profit / 10 years: 14.016.220 Euro (before loan reimbursement);
° cumulated net surplus / 10 years: 9.769.278 Euro (after loan reimbursement).

Cumulated net profit:

9.769.278 Euro/10 years

N.B.: the production of electric power and thermal energy from renewable resources is the only
business in Romania in which its carryon and profit obtaining is regulated by the national
legislation and the one of the European Union !

General Information
Biogas:
• is a gas produced by the anaerobic fermentation of certain organic substrata, with a content of over 5%
methane;
• the electric power and thermal energy obtained from the gas produced in the co-fermentation
installations make part from the category “Renewable Energies” or so called “Green Energies”, etc.
Methane bacteria:
The methane bacteria act in the anaerobic fermentation process: The necessary environment conditions are:
• anaerobic environment;
• temperatures from 15 °C to 55 °C;
• pH values from 6.5 to 8.0;
• avoidance of the slowing factors, such as: heavy metal salts, antibiotics, disinfectants, etc.
Advantages:
• costs saving for electric power and thermal energy;
• incomes from the sale of electric power surplus;
• incomes from the sale of thermal energy surplus;
• obtaining of 3 green certificates for each 1 MWh produced and delivered by electric power producers
from the sources provided for at art. 3 par. (1) letter d)-i), according to Law 220-2008 and Law 139-
2010;
• obtaining of one more green certificate for each produced and delivered 1 MWh granted in addition
to the provisions of art. 3 par. (1) letter d (according to Law 220-2008 and Law 139-2010), for the
electric power produced in highly efficient cogeneration in plants using renewable energy sources.

Biogas Potential
The use of wastes of animal origin, organic wastes and other types of biomass as energy source depends
greatly on their availability. The availability and use are strictly dependent on the national and European
Union’s energetic and environmental policies. Wastes (of animal origin) and other types of organic wastes co-
fermentation in biogas plants represent an integrated process. Besides the production of renewable energy,
the process includes environmental and agricultural benefits, such as:

Pag 1
 • money saving by the farmers;
• fertilizers’ efficiency improvement;
• reduction of greenhouse gases emissions, etc.
Biogas Production:
• any raw material containing organic substance, vegetable raw materials (energetic plants), wastes of
animal origin, as well as residues from food industry may be taken over in the fermentation process;
• this raw material, hereinafter referred to as “substratum” or “co-ferment” is classified in substratum of
animal origin (wastes) and substratum of vegetal origin (vegetal mass);
• depending on their origin, these substrata must be subject to different treatments before their entry in
the process;
• the most common is the dry fermentation process in mesophyll field (co-fermentation), etc.

Process Description, Co-fermentation, Cogeneration, Fertilizer

Raw materials used in biogas production plants:
In biogas production plants, the said may be produced using numerous and different types of sources. The
organic material is essential as type of biogas generation source and as starting point in the production
process. The organic material should not contain wood (lignin) because the bacteria in the plant cannot
process such substance.

Co-fermentation (biogas production):

The biogas is obtained as result of the metabolism of methane bacteria, in an anaerobic environment, in the
absence of oxygen and light, by the methanization and metabolism of the organic mass.
The methane bacteria can exist in optimal conditions only when the environment in which the biomaterial is
present has sufficient humidity (the contents of dry matter is lower than 50%). The operation range of the
0 0
methane bacteria is from 5 to 70 C. The mesophyll stems exist at temperatures of 35-45 C, and the
0
thermophile stems at temperatures of 45-60 C. The essential conditions for methanization process
occurrence are, among others, the pH value in the substratum, the quality and continuity of the supply with
nutrients, substance’s surface, the inhibitors existing in the substratum, the loading of the fermentation
space, elimination of the gas from the substratum using the mixing mechanisms, as well as the retention.
The anaerobic fermentation is produced by the biological decomposition of the organic substance in the
absence of oxygen and light, within a certain temperature window, by means of the methane bacteria. The
selection of the fermentation temperature is decisive for gas exploitation, for biomass retention in the
anaerobic process, as well as for substratum’s quality from fermentation residues point of view. The gas
0
extraction plant operates at a temperature ranging 35 to 42 C, when it’s working with mesophyll
fermentation. The operation manner represents a continuous process of gas storing / flowing. The resulted
gas mixture includes methane up to 75% of its volume. The other components, listed in the order of their
nominal value, are carbon dioxide, water and hydrogen sulfide.
Before using biogas for energy production, the primary gas is subject to physical dehydration and biological
desulphurization. Biogas dehydration before its utilization in energy production has as purpose the
preservation of the heat number and thus, the increase of its yield, avoidance of pressure loss in pipes
system, as well as corrosion prevention. In order to avoid by condensation the water participations in the
primary gas, the gas line will be cooled, and by descending under dew temperature point, condensation is
produced and thus water elimination from the gas. This water resulted from condensation is returned in the
substratum mass, as water for ferments processing.
For the precipitation of the hydrogen sulfide, air is blown in the gas pipe. The elementary sulfur, which
remains on substratum surface, will improve dung’s quality. The primary gas, after eliminating the hydrogen
sulfide is then passed, from low pressure gas containers, through the ferments, in post-fermentation
containers and storage of the fermentation remains containers and then will be used.

Cogeneration (biogas turning to account):

Definition of "cogeneration":
• it comes from the fact that in the turning to account process of the biogas produced in co-fermentation,
both electric power and thermal energy results.
Cogeneration:
• the biogas produced by fermentation of the organic matter in the substrata is subject to processes such
as desulphurization, drying, etc., being subsequently used also as fuel for internal combustion engines.
From these co-generators (CHP) electric power (green energy) and thermal energy are resulting. The
term of “tri-generation” is not correct, because the agent “cold” does not result from the CHP, as some
say, since in order to produce it, an additional module for thermal agent transformation is required.
Electric power:
• CHP engine develops on its coupling a mechanical energy that is applied to an electric generator. The
said will deliver electric power that may be used in our own company or delivered in the national
network. CHP is equipped with an automation board, which has as role to synchronize the frequency
and voltage with the national network, to monitor the operation parameters and to adjust the load
depending on the available gas.

Pag 2
Thermal agent:
• As any internal combustion engine, CHP engine must be cooled;
• The heat delivered by the engine is recovered in a heat exchanger, together with the heat from the
exhaust gas and used for process heating, namely a considerable quantity remains at beneficiary’s
disposal.

Products resulting from the Biogas Production Plant:

From the process itself it results:
• Electric power (1 MW / h), which may be delivered in SEN (national network);
• Thermal agent (0.75 MW / h), which may be used in our own company (hot water for slaughterhouse,
animal breeding hall heating, pre-heating of the process water, etc.), for a greenhouse, cereals dryers
heating, wood drying, etc., or may be converted (in part) with additional equipment in electric power or
cold;
• Fermentation sludge - (10.815 to/year), in the aqueous state in which it results from the process
contains all the inorganic substances that were contained by the substrata entered in fermentation, but
the said are not linked anymore to the organic part.

Equipment, Technology, Price

Land: purchase and preparation 300,000

VAT 72,000
Licenses and technology 50,000
VAT 12,000
Raw materials and materials 300,000
VAT 72,000
Constructions - (buildings, storehouses, 350,000
etc.)
VAT 84,000
Machineries & Equipment 3,625,000
VAT 870,000
Project management expenses 335,000
VAT 80,400
Cars, transport and insurance 60,000
VAT 14,400
Other capital costs 20,323
VAT 4,877

Total cost 5,040,323

VAT 1,209,677
Estimated basic cost 6,250,000

The following works are not included in the offer:

• Project and financing plan preparation;
• Authorizations and approvals from the authorities,
• Analysis of soil compaction degree / bearing capacity;
• Studies or special tests prescribed by the authorities;
• During mounting – to make available a three-phase current connection, water;
• Telephone with separate number during warranty;
• Insurance policy during construction.

Pag 3
Incomes and expenses budget: Euro
Sales incomes: Year 0 Year I Year II Year III Year IV Year V Year VI Year VII Year VIII Year IX Year X
internal incomes 0 2,179,170 2,266,337 2,356,991 2,453,719 2,551,868 2,653,942 2,760,100 2,870,504 2,985,324 3,104,737
other internalincomes 0 0 0 0 0 0 0 0 0 0 0
foreign incomes 0 0 0 0 0 0 0 0 0 0 0
other financial incomes 1,209,677 523,001 543,921 565,678 588,893 612,448 636,946 662,424 688,921 716,478 745,137
incomes-exchange rate 0 30,508 31,729 32,998 34,352 35,726 37,155 38,641 40,187 41,795 43,466
interests incomes 0 34,867 36,261 37,712 39,260 40,830 42,463 44,162 45,928 47,765 49,676
Total incomes 1,209,677 2,767,546 2,878,248 2,993,378 3,116,223 3,240,872 3,370,507 3,505,327 3,645,540 3,791,362 3,943,016
Operational costs:
* local materials 0 -282,979 -294,298 -306,070 -318,631 -331,376 -344,631 -358,416 -372,753 -387,663 -403,170
* imported materials 0 0 0 0 0 0 0 0 0 0 0
* packages 0 0 0 0 0 0 0 0 0 0 0
* electric power - t.e. 0 -23,488 -24,897 -25,893 -26,956 -28,034 -29,156 -30,322 -31,535 -32,796 -34,108
* salaries + CAS I 0 -75,624 -78,649 -81,795 -85,151 -88,557 -92,100 -92,840 -93,609 -94,409 -95,242
* transport 0 -13,953 -14,511 -15,092 -15,711 -16,339 -16,993 -17,673 -18,380 -19,115 -19,879
* water / heating 0 -9,125 -10,253 -11,089 -12,006 -12,986 -14,045 -15,192 -16,431 -17,772 -19,222
* marketing/publicity 0 -4,841 -5,131 -5,336 -5,555 -5,778 -6,009 -6,249 -6,499 -6,759 -7,029
* other direct costs 0 -2,072 -2,155 -2,241 -2,333 -2,426 -2,523 -2,624 -2,729 -2,839 -2,952
Total + VAT 0 -388,593 -404,997 -421,623 -439,388 -457,463 -476,302 -492,994 -510,401 -528,557 -547,494
* TESA salaries II 0 -8,855 -9,209 -9,577 -9,970 -10,369 -10,784 -11,215 -11,664 -12,130 -12,616
* management 0 -6,954 -7,232 -7,522 -7,830 -8,144 -8,469 -8,720 -8,982 -9,253 -9,536
* sales expenses 0 -11,840 -12,314 -12,807 -13,332 -13,865 -14,420 -14,997 -15,597 -16,220 -16,869
Total + VAT 0 -27,649 -28,755 -29,905 -31,133 -32,378 -33,673 -34,933 -36,242 -37,604 -39,021
Total costs + VAT 0 -416,243 -433,752 -451,529 -470,521 -489,841 -509,975 -527,926 -546,644 -566,161 -586,515
Depreciations:
* total depreciations 0 -257,782 -244,094 -231,188 -219,012 -207,520 -196,668 -186,417 -176,729 -167,570 -158,908
Interests expenses
* ST foreign loans 0 0 0 0 0 0 0 0 0 0 0
* ST internal loans 0 0 0 0 0 0 0 0 0 0 0
* LT foreign loans 0 0 -598,958 -529,514 -460,069 -390,625 -321,181 -251,736 -182,292 -112,847 -43,403
* LT internal loans 0 0 0 0 0 0 0 0 0 0 0
Total interests exp. 0 0 -598,958 -529,514 -460,069 -390,625 -321,181 -251,736 -182,292 -112,847 -43,403
Other costs:
* other operation exp. -1,209,677 -523,001 -543,921 -565,678 -588,893 -612,448 -636,946 -662,424 -688,921 -716,478 -745,137
* financial expenses 0 0 0 0 0 0 0 0 0 0 0
* other taxes, funds 0 -55,583 -58,405 -60,648 -63,046 -65,480 -68,014 -69,475 -70,997 -72,582 -74,234
Total -1,209,677 -578,584 -602,326 -626,326 -651,939 -677,928 -704,960 -731,899 -759,918 -789,060 -819,371
Total gen. expenses -1,209,677 -1,252,609 -1,879,131 -1,838,556 -1,801,541 -1,765,914 -1,732,784 -1,697,978 -1,665,582 -1,635,639 -1,608,197
Gross profit 0 1,514,937 999,117 1,154,822 1,314,683 1,474,958 1,637,723 1,807,349 1,979,958 2,155,723 2,334,819
* Gen. provisions 0 -151,494 -99,912 -115,482 -131,468 -147,496 -163,772 -180,735 -197,996 -215,572 -233,482
* tax on profit 0 -218,151 -143,873 -166,294 -189,314 -212,394 -235,832 -260,258 -285,114 -310,424 -336,214
Net profit 0 1,145,293 755,333 873,045 993,900 1,115,068 1,238,118 1,366,356 1,496,848 1,629,727 1,765,123
* distributed profit 0 0 0 0 0 0 0 0 0 0 0
* paid dividends 0 0 0 0 0 0 0 0 0 0 0
Distributed net profit 0 1,296,786 855,244 988,528 1,125,368 1,262,564 1,401,891 1,547,090 1,694,844 1,845,299 1,998,605
Pag 4
Cash-Flow: Euro
Total project Year 0 Year I Year II Year III Year IV Year V Year VI Year VII Year VIII Year IX Year X
Cash incomings sources
* not distributed profit 0 1,296,786 855,244 988,528 1,125,368 1,262,564 1,401,891 1,547,090 1,694,844 1,845,299 1,998,605
* from depreciations 0 257,782 244,094 231,188 219,012 207,520 196,668 186,417 176,729 167,570 158,908
Total – Cash flows 0 1,554,569 1,099,338 1,219,715 1,344,380 1,470,084 1,598,559 1,733,508 1,871,573 2,012,869 2,157,514
Incomings from net financial operations:
* ST internal loans 0 0 0 0 0 0 0 0 0 0 0
* ST foreign loans 0 0 0 0 0 0 0 0 0 0 0
* LT internal loans 0 0 0 0 0 0 0 0 0 0 0
* LT foreign loans 6,250,000 0 0 0 0 0 0 0 0 0 0
* other internal loans 0 0 0 0 0 0 0 0 0 0 0
* other foreign loans 0 0 0 0 0 0 0 0 0 0 0
Total fin. assets inc. 6,250,000 0 0 0 0 0 0 0 0 0 0
Incomings from other sources:
* financial incomes 0 0 0 0 0 0 0 0 0 0 0
* other fin. incomes 0 0 0 0 0 0 0 0 0 0 0
Total – incomings 0 0 0 0 0 0 0 0 0 0 0
Total cash incomings 6,250,000 1,554,569 1,099,338 1,219,715 1,344,380 1,470,084 1,598,559 1,733,508 1,871,573 2,012,869 2,157,514
Cash outflows:
Investment activities – Total project cost:
* land, raw materials 806,000 0 0 0 0 0 0 0 0 0 0
* buildings 434,000 0 0 0 0 0 0 0 0 0 0
* equipment, machines 4,495,000 0 0 0 0 0 0 0 0 0 0
* insurance, transport 0 0 0 0 0 0 0 0 0 0 0
* obligations, taxes 0 0 0 0 0 0 0 0 0 0 0
* administrative exp. 415,400 0 0 0 0 0 0 0 0 0 0
* preparation, assist. 0 0 0 0 0 0 0 0 0 0 0
* motor vehicles 74,400 0 0 0 0 0 0 0 0 0 0
* other costs 25,200 0 0 0 0 0 0 0 0 0 0
* Financial expenses 0 0 0 0 0 0 0 0 0 0 0
* Various expenses 0 0 0 0 0 0 0 0 0 0 0
Total investments 6,250,000 0 0 0 0 0 0 0 0 0 0
For net financial activities:
* reimb.ST foreign loans 0 0 0 0 0 0 0 0 0 0 0
* reimb.ST int. loans 0 0 0 0 0 0 0 0 0 0 0
* reimb.LT foreign loans 0 0 694,444 694,444 694,444 694,444 694,444 694,444 694,444 694,444 694,444
* reimb.LT int. loans 0 0 0 0 0 0 0 0 0 0 0
* other LT liabilities 0 0 0 0 0 0 0 0 0 0 0
Total fin. assets outflows 0 0 694,444 694,444 694,444 694,444 694,444 694,444 694,444 694,444 694,444
* working capital increases 0 86,082 3,488 3,665 3,850 5,141 2,769 4,073 4,239 -72,173 1,699
Total cash outflows 6,250,000 86,082 697,932 698,109 698,295 699,585 697,213 698,518 698,683 622,271 696,143
Annual surplus/deficit 0 1,468,487 401,406 521,606 646,086 770,499 901,346 1,034,990 1,172,890 1,390,598 1,461,370
Cum. surplus/deficit 0 1,468,487 1,869,893 2,391,499 3,037,584 3,808,083 4,709,429 5,744,419 6,917,309 8,307,908 9,769,278

Pag 5
Simplified balance sheet: Euro
Total project Year 0 Year I Year II Year III Year IV Year V Year VI Year VII Year VIII Year IX Year X
Capital assets:
Current assets:
* cash surplus 0 1,468,487 1,869,893 2,391,499 3,037,584 3,808,083 4,709,429 5,744,419 6,917,309 8,307,908 9,769,278
* available assets 0 41,513 43,174 44,961 46,806 49,909 50,558 52,580 54,683 56,870 59,145
* suppliers – debtors 0 23,063 23,985 24,945 25,969 27,007 28,088 29,211 30,380 31,595 32,858
* raw materials, mat. 0 24,975 26,025 27,092 28,231 29,390 30,598 31,676 32,799 33,970 35,191
* other values 0 2,768 2,878 2,993 3,116 3,241 3,371 3,505 3,646 3,791 3,943
Total current assets 0 1,560,805 1,965,955 2,491,489 3,141,706 3,917,631 4,822,043 5,861,391 7,038,816 8,434,134 9,900,416
Net fixed assets (fixed assets - depreciation):
* depreciations, etc. 6,250,000 5,992,218 5,748,124 5,516,936 5,297,924 5,090,404 4,893,736 4,707,319 4,530,589 4,363,019 4,204,111
* adjustm./assim. acc. 0 0 0 0 0 0 0 0 0 0 0
* fixed assets in
progress 70 151,568 99,989 115,563 131,552 147,583 163,863 180,829 198,094 215,674 233,588
Total fixed assets 6,250,070 6,143,786 5,848,113 5,632,499 5,429,476 5,237,987 5,057,599 4,888,148 4,728,683 4,578,693 4,437,699
Total assets 6,250,070 7,704,591 7,814,068 8,123,988 8,571,182 9,155,619 9,879,642 10,749,539 11,767,499 13,012,827 14,338,115
Liabilities and equity:
* Cash deficit 0 0 0 0 0 0 0 0 0 0 0
Short Term Liabilities:
* ST internal debts 0 0 0 0 0 0 0 0 0 0 0
* ST foreign debts 0 0 0 0 0 0 0 0 0 0 0
* clients – creditors 0 3,469 3,615 3,763 3,921 4,082 4,250 4,399 4,555 47,180 48,876
* other liabilities 0 2,768 2,878 2,993 3,116 3,241 3,371 3,505 3,646 37,914 39,430
Total current liabilities 0 6,236 6,493 6,756 7,037 7,323 7,620 7,905 8,201 85,094 88,306
Long Term Liabilities:
* foreign 6,250,000 6,250,000 5,555,556 4,861,111 4,166,667 3,472,222 2,777,778 2,083,333 1,388,889 694,444 0
* internal 0 0 0 0 0 0 0 0 0 0 0
Total LT debts 6,250,000 6,250,000 5,555,556 4,861,111 4,166,667 3,472,222 2,777,778 2,083,333 1,388,889 694,444 0
* equity 0 0 0 0 0 0 0 0 0 0 0
* adjust./ass. acc. 0 0 0 0 0 0 0 0 0 0 0
Total liabilities 6,250,000 6,256,236 5,562,048 4,867,867 4,173,704 3,479,545 2,785,398 2,091,238 1,397,090 779,538 88,306
Equity:
* paid capital 70 74 77 81 84 87 91 94 98 102 106
* not distrib. profit 0 1,296,786 855,244 988,528 1,125,368 1,262,564 1,401,891 1,547,090 1,694,844 1,845,299 1,998,605
* total not distrib. prof 0 0 1,296,786 2,152,031 3,140,558 4,265,927 5,528,490 6,930,381 8,477,472 10,172,316 12,017,615
Total equity 70 1,296,861 2,152,108 3,140,639 4,266,010 5,528,578 6,930,472 8,477,566 10,172,414 12,017,717 14,016,326
* gen. provisions 0 151,494 99,912 115,482 131,468 147,496 163,772 180,735 197,996 215,572 233,482
Total liabilities/equity 6,250,070 7,704,591 7,814,068 8,123,988 8,571,182 9,155,619 9,879,642 10,749,539 11,767,499 13,012,827 14,338,115
Internal Rate of Return: the sensitivity test applied to the computation of sales incomes (percentages changed in 4 alternatives under the following presumptions):
Sales incomes (%): 100 % Sales incomes (%): - 20 % Sales incomes (%): - 40 % Sales incomes (%): - 52 %
financial rate of return: 30 % financial rate of return: 21 % financial rate of return: 12 % financial rate of return: 5%
net present value (EUR): 9.048.257 net present value (EUR): 5.552.532 net present value (EUR): 2.094.398 net present value (EUR): 31.505
discount rate: 5 discount rate: 5 discount rate: 5 discount rate: 5

Pag 6
Energy Assignment / Sale / green certificates
Synthesis: Law 220-2008 and Law 139-2010
Chapter I: General Provisions
Art.3
(1) The promotion system of the electric power produced from renewable energy sources, hereinafter
referred to as promotion system, established by this law is applied for the electric power delivered in the
electrical network and/or to consumers, produced from:
e. biomass;
g. biogas;
(2) The promotion system established by the present law is applied for a period of:
a. 15 years, for the electric power produced according to the provisions of par.(1), in new groups / power
plants;
(7) In case of the electric power produced from renewable sources in cogeneration, the promotion system is
applied for the electric power produced in highly efficient cogeneration qualified according to the regulations
in force, the producers having the right to opt either for the production scheme for cogeneration, or for the
promotion scheme provided for in this law.

Chapter II: The promotion system of electric power production from renewable sources of energy
Art.4
(1) For the promotion of electric power production from renewable energy sources the promotion system
regulated by the present law is applied.
(2) The level of the national target regarding the weight of the electric power produced from renewable
energy sources in the final gross consumption of electric power in the perspective of the years 2010, 2015
and 2020 is of 33 %, 35 % and 38 %, respectively.

Art.5
(1) The Transport and System Operator issues on a monthly basis to the producers green certificates for the
quantity of electric power produced from renewable energy sources and delivered to the suppliers and or end
users.
(2) The producers of energy from renewable sources benefit of a number of green certificates for the electric
power produced and delivered according to the provisions of par. (1), including for the quantity of electric
power produced in the trial period of groups/power plants’ operation, as follows:
d. 3 green certificates for each 1 MWh produced and delivered by the electric power producers from
the sources provided for at art. 3 par. (1) letter d)-i);
(4) For the electric power produced in highly efficient cogeneration in plants using the renewable energy
sources provided for at art. 3 par. (1) letter d)-i) in addition to the provisions of art. 3 par. (1) letter d) one
green certificate is granted for each 1 MWh produced and delivered.

Art.6
(2) The producers that deliver electric power based on direct contracts transmit on a monthly basis to the
Transport and System Operator data regarding the quantities of electric power produced from renewable
sources.

Chapter III: Green Certificates Trading

Art.9
(1) The producers of electric power from renewable energy sources and the suppliers will trade the green
certificates in the centralized market of green certificates, as well as in the market of the bilateral contracts of
green certificates.
(2) The trading framework of the green certificates in the green certificates market is ensured by the Trading
Company «Opcom» - S.A., as operator of the electric power market, according to ANRE regulations.
(3) Until achieving the national targets, the green certificates may be traded only in the domestic market of
green certificates.

Art.10
(1) For the period 2008-2025, the trading value of the green certificates in the markets set forth at art.
9 par. (1) is ranging between:
a. a minimal trading value of 27 euro / green certificate; and
b. a maximal trading value of 55 euro / green certificate.

Chapter VI: Marketing of the Electric Power produced from Renewable Energy Sources
Art.13
(1) The producers of the electric power from renewable energy sources sell the produced electric power in the
electric power market at market price.

Art.14
(1) In order to achieve the national objective regarding the power from renewable energy sources:
a. Romania may, by joint agreements with European Union Member States:

Pag 7
 (i) provide and agree upon transfers of quantities of electric power from renewable sources to
another Member State;
(ii) cooperate at the implementation of joint projects regarding electric power production from
renewable energy sources;
(iii) harmonize, in whole or in part, the national promotion schemes.
1
Chapter IX : Origin Guarantees for Electric Power, Heating and Cooling Produced from Renewable
Energy Sources
1
Art.18
(1) In order to prove to the final consumer the weight or quantity of energy from renewable sources within
the energy mix of a supplier, the system of origin guarantees of the energy production from renewable
sources is established, according to objective, transparent and non-discriminatory criteria.

Green Certificates Market – General Description

OPCOM – Green Certificates Market Operator – the legal entity ensuring the trading of the green
certificates and that determines the prices in the Centralized Market of green certificates, fulfilling the
functions provided for by the Regulation for the organization and operation of Green Certificates Market
(ANRE Order 15-2005).

Green Certificates - document certifying a quantity of 1 MWh of electric power produced from renewable
energy sources.

Mandatory Quotas System – promotion mechanism of the production of electric power from renewable
energy sources, by the acquisition by the suppliers of mandatory quotas of electric power produced from such
sources for sale to the served consumers.

Mandatory Quotas System Operation for the promotion of the electric power produced from renewable
energy sources involves the following steps:
° ANRE – The regulatory authority sets a fixed quota of electric power produced from renewable energy
sources, which the suppliers are obliged to buy;
° ANRE – The regulatory authority qualifies on a yearly basis the producers of electric power from
renewable energy sources, in order to obtain green certificates;
° the producers receive for each unit (1 MWh) of electric power delivered in the network, three green
certificates, which may be sold separately from the electric power in the Green Certificates Market;
° in order to fulfill the obligations, the suppliers must hold a number of Green Certificates equal to the
imposed quota of electric power from renewable energy sources;
° the value of the green certificates represents an additional gain received by the producers for the “clean
energy” they deliver in the networks.

The additional price received for the sold green certificates is determined in a parallel market, where the
benefits to the environment are transacted.
The value of the green certificates is determined by market mechanisms:
° by bilateral contracts between producers and suppliers;
° in a centralized market organized and managed by OPCOM.
The price of the green certificates varies within an interval (Pmin ÷ Pmax) fixed by Government Resolution.
The minimum price is imposed for producers’ protection, and the maximum price for consumers’ protection.
For the period 2008-2014 green certificates’ trading value is framing between a minimal trading value of 27
euro / green certificate and a maximal trading value of 55 euro / green certificate. The value in RON will be
computed at the average value of the exchange rate set by the National Bank of Romania for the month of
December or the previous year. (Law 220-2008).

Actors:
° ANRE – the Regulatory Authority;
° The producers of electric power from renewable energy sources;
° The suppliers;
° OTS - Transport and System Operator;
° OPCOM.
The annual Mandatory Quotas of green certificates for the period 2008 – 2020 are:
2011 = 10,0 %; 2012 = 12,0 %; 2013 = 14,0 %; 2014 = 15,0 %; 2015 = 16,0 %;
2016 = 17,0 %; 2017 = 18,0 %; 2018 = 19,0 %; 2019 = 19,5 %; 2020 = 20,0 %.
ANRE role:
° it qualifies the electric power producers in the eligible SRE, for the participation in green certificates
market;
° it sets annually the minimum price and the maximum price for the green certificates;
° it follows up the fulfillment of the mandatory quota by the suppliers;
° it applies penalties for failing to fulfill the quota.
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Electric Power Suppliers (i.e. CN Transelectrica SA):
They are obliged to buy annually a number of green certificates equal to the product between the value of the
mandatory quota and the quantity of electric power supplied annually to the final consumers.

Role of Transport and System Operator:

° it receives monthly from the producers and from Networks Operators to which the said are connected
notices regarding the quantities of EP-RES delivered in the networks;
° it issues monthly green certificates to the producers for the quantity of EP-RES produced and delivered
in the network in the previous month, etc.
The amounts of money resulted from penalties application, collected by the Transport and System Operator
are allocated annually by ANRE, based on objective criteria, for investments, in order to facilitate the access
to the transport/distribution network (Law 220-2008 and Law 139-2010).

OPCOM role:
° it registers the participants in the Green Certificates Market;
° it forecasts and makes public the demand and supply of green certificates at national level;
° it registers the bilateral contracts of green certificates trading between the producers of electric power
from renewable energy sources and the suppliers;
° it establishes and manages the Green Certificates Register;
° it assures the trading framework for the green certificates in the Centralized Market (GCCM);
° it receives the sale / purchase offers of the green certificates from the producers / suppliers (consumers);
° it sets and makes public the Closing Price of the Centralized Market of green certificates and the number
of green certificates traded monthly in the Centralized Market of green certificates, etc.

Scheme: Green certificates (GC) trading:

GC notices issued imposes penalties for non-compliance

Certification ANRE Mandatory quota

quota consumed
fulfillment GC

Producer supply demand Supplier

EP-RES EP consumpt.
EP-RES OPCOM Mandatory quota

GC notice issued

GC Register penalties
Networks Poducer Supplier
operators account seller buyer account
+ - + -
List of all
transactions

measured values Issued Used

of delivered EP certificates certificates
+ - List of valid GC - + payment
+ -
payment
OTS GC issue OPCOM

OTS receives the amounts from penalties

Concept: Tacoma Consulting, Source: ANRE, OPCOM, OTS, Law 220-2008 and Law 139-2010

Results of green certificates trading in the Centralized Market

Year / trading month Number No. of No. of Traded volume Closing Price of GCCM
of bidders sale offers purchase No. of green RON/certificate
offers certificates
2005 decembrie - - - 56 165,00
2006 decembrie 36 3 33 101 155,00
2007 December 31 10 21 4.304 142,72
2008 December 46 12 34 7.213 194,09
2009 October 33 12 21 9.668 215,34

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Project Circuit (structural funds)

The actual component of the consulting team

senior consultants:
○ Deac M.S. (CPSA: 6619.91, 6920.3, 7021.1, 7022.1, 7022.11, 7022.12, 7022.13, 7022.14,
7022.15, 7022.16, 7022.2, 7022.3, 7022.30),
○ Dragomir C. (CPSA: 6619.91, 7022.11, 7022.2, 7022.3, 7022.15, 7022.16, 7022.30),
○ Popescu E.N. (CPSA: 6619.91, 7022.11, 7022.2, 7022.3, 7022.15, 7022.16, 7022.30),
○ Orban I. (CPSA: 6619.91, 6920.3, 7022.11, 7022.15, 7022.16, 7022.2, 7022.3, 7022.16),
○ Szakal I. (CPSA: 6619.91, 6920.3, 7021.1, 7022.1, 7022.11, 7022.12, 7022.13, 7022.14).

consulting parteners (tehnical):

○ Attila Törzsök (marketing),
○ Moldoveanu C. (designing / architecture),
○ Conon V. (endurance),
○ Lemák R.M. (I.T: soft / hard),
○ other consulting partners (selected according to projects necessities).
consulting companies:
○ leading contractors:
○ Tacoma Consulting Romania - 2007-2010 (CPSA: 6619.91, 6920, 7021, 7022),
○ International Consulting Romania - 2002-2010 (CPSA: 6619, 6619.91, 6920, 7021, 7022),
○ Abacus Romania - 2004-2010 (CPSA: 6619, 6619.91, 6920, 7021, 7022),
○ LTT Halo Romania - 2007-2010,
○ other partner companies (selected according to projects necessities).

Tacoma Consulting
tel: +40757-649.117 / +40729-431.550
e-mail: tacoma.office@gmail.com

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