Barriers and Opportunities for Biomass Utilization in Romania
The biomass potential in Romania is expected also to increase over the period 2005-2010 through reforestation with other various tree species and short rotation forestry.
The National Institute of Wood, is responsible, under the coordination of Ministry of Economy and Trade, and the Ministry of Environment and Water Management for the elaboration of feasibility studies and of execution projects of pilot plants and demonstration units and thermal plants. Until 2010, the Government will allocate to these actions, 100 million Euro, being necessary also foreign financing sources of cca. 140 million Euro.
Specific barriers to the implementation of biomass projects in Romania include:
- Lack of regulations for tax incentives for utilisation of biomass wastes;
- Romania has no energy or carbon taxes on any type of fuel or energy;
- Lack of financial sources for production and utilisation of briquettes and pellets.
The legislation in this field was completed with the GD 1892/2004 regarding the establishment of promoting system for power production using renewable energy sources. The Decision is applicable to electricity production using renewable sources (including biomass) in power stations with an installed power up to 10 MW, put into operation or modernised since 2004. This government decision provides the application of compulsory rates of power input, combined with the trading system of green certificates (document which proves that a quantity of 1 MWh power was produced from renewable energy sources).
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Barriers and Opportunities for Biomass Utilization in Romania