Biogas, biomass and geothermal state aid scheme launched in Romania

A new state aid scheme to support investments in ‘less exploited’ renewable resources, such as biogas, biomass and geothermal energy, has been approved in Romania.

The new support scheme from the Romanian government applies until 2020, and has a total budget of over EUR 100,000 ($107,000). 85% of the budget comes from the European fund for regional development, 15% from the state’s funds.

Acting as ‘state provider’ is the Romanian Ministry of Regional Development, Public Administration and European Funds. It will be responsible for handling applications, establishing eligibility conditions, and signing contracts with successful beneficiaries, according to Lexology.

Projects developing new capacity or refurbishing existing capacities for the production of electricity or thermal energy through biogas, biomass or geothermal energy in developing regions of Romania will be eligible for the new support scheme.

Although Romania has seen significant increase in production from renewable sources in recent years, this has mainly been achieved through investment in solar and wind power under the green certificates support scheme, Lexology reports. It is planned for the new support scheme to have roughly 40 beneficiaries, and generate an additional 60 MW of installed capacity of production from biogas, biomass and geothermal energy.

Currently, the annual production of energy from renewable resources in Romania is approximately 6,550 ktoe (kilotons of oil equivalent). A technical potential of 8,000 ktoe remains unexploited, with biomass and biogas representing 47%, solar energy 19%, wind energy 19%, hydropower energy 14% and geothermal energy 2%.