Romanian Electricity Prices May Double Within 8 Years - Suppliers

04.19.2011 By Andrei Circhelan

The price of electricity could double in Romania over the next 7-8 years, because of the costs involved in support schemes for renewable energy and pollution reduction, Tuesday said Ion Lungu, president of electricity supplier association AFEER.

The price of electricity could double in Romania over the next 7-8 years, because of the costs involved in support schemes for renewable energy and pollution reduction, Tuesday said Ion Lungu, president of electricity supplier association AFEER.

"Prices could rise by EUR40-60 per MW within 7-8 years, from the current EUR40 per MW, to include green certificate costs, cogeneration bonuses and the purchase of greenhouse gas emission deeds," Lungu told an energy conference.

He added a clear forecast is not possible, but the high costs of non-pollutant energy are a red flag.

"Somebody needs to pay in the end, and that someone cannot double their budget within seven years," said Mihai David, board president at state-owned hydropower producer Hidroelectrica.

Recently, the local energy watchdog ANRE said the support scheme for renewable energy has a total budget of EUR10.5 billion until 2031, which may case a 5%-7% increase in electricity production prices this year.